Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
401k Leakage and Auto Portability Featured at Senate Committee Hearing
Writing in 401k Specialist, RCH EVP Tom Johnson reports on the U.S. Senate’s Committee on Health, Education, Labor and Pensions (HELP) 5/13/21 hearing on retirement security. With testimony from a blue-ribbon panel of witnesses, the hearing had a broad focus, but the topic of retirement savings leakage, and its most-promising solution, auto portability, were prominently featured in testimony by EBRI CEO Lori Lucas, and echoed by other witnesses and Committee members.
How to Get Participants to Really Think Twice About Early Withdrawals
PLANSPONSOR's Lee Barney examines the problem of leakage, turning to RCH's team of experts. RCH EVP Neal Ringquist offers advice for sponsors and advisers to manage loans and in-service withdrawals, and emphasizes the importance of effective communication and portability in stemming cashout leakage. Next, RCH's Tom Hawkins characterizes the leakage problem by citing key statistics. RCH President & CEO Spencer Williams gets the last word, addressing the importance of "engag[ing] a service provider that specializes in providing counsel and education to new hires and terminating employees to help them make good decisions and prevent leakage."
What happens to your 401(k) after you leave a job?
Writing in Bankrate, Karen Roberts and James Royal offer readers 8 things to consider about moving a 401(k) account following a job change or lay off. At the outset, Roberts & Royal acknowledge the difficulties, stating "moving your 401(k) and when to do may be more challenging than you realize." The authors highlight many options participants must keep in mind, underscoring the need for education. For balances under $5,000, they reference the rise of auto portability, writing that "[s]ome companies have recently adopted auto portability, meaning your small balance may automatically transfer to your new employer’s plan" and advise participants to inquire with their HR Department.
A Big Problem: Another Leakage Study Reaches the Same Conclusion
Writing in 401k Specialist Magazine, RCH’s Tom Hawkins examines a retirement savings leakage study from the Joint Committee on Taxation, a nonpartisan committee of the United States Congress. Released with little fanfare on 4/26/21, the study confirms the findings of earlier research on cashout leakage – namely, that cashout leakage is a big problem, is driven by job changing, and is exacerbated by "forced distributions and [a lack of] portability of plans.”
Leakage and Auto Portability Featured at Senate HELP Committee Hearing
Writing in RCH's Consolidation Corner, RCH EVP Tom Johnson reports on the U.S. Senate’s Committee on Health, Education, Labor and Pensions (HELP) 5/13/21 hearing on retirement security. With testimony from a blue-ribbon panel of witnesses, the hearing had a broad focus, but the topic of retirement savings leakage, and its most-promising solution, auto portability, were prominently featured in testimony by EBRI CEO Lori Lucas, and echoed by other witnesses and Committee members.
EBRI CEO's Senate HELP Committee Testimony Addresses Auto Portability
EBRI CEO Lori Lucas, testifying on retirement security before the U.S. Senate's Health, Education, Labor and Pensions (HELP) Committee on 5/13/21, targets "reducing plan leakage" as a key policy initiative, and identifies auto portability as a solution that could dramatically lower cashout leakage levels. Lucas points to EBRI research that quantifies auto portability's projected benefits of $2.0 trillion when applied to all balances, $1.5 trillion when applied to balances less than $5,000, and its ability to significantly boost the benefits of other policy initiatives, such as open MEPs.
Wealth gap, emergency savings lead Senate committee hearing
InvestmentNews retirement and insurance reporter Emile Halez covers testimony before the U.S. Senate Committee on Health, Education, Labor & Pensions (HELP), which convened for the first time since 2013 to discuss retirement security. Halez notes that the focus of the committee included emergency savings and student loans, but also addressed the promise of auto portability as a means to addressing excessive cashout leakage. EBRI CEO Lori Lucas carried the auto portability banner before the HELP Committee, telling the legislators that "open multiple-employer plans with automatic account portability between employers could reduce the money flowing out early from 401(k)s by an estimated 26%."
A Big Problem: Another Leakage Study Reaches the Same Conclusion
RCH’s Tom Hawkins examines a retirement savings leakage study from the Joint Committee on Taxation, a nonpartisan committee of the United States Congress. Released with little fanfare on 4/26/21, the study confirms the findings of earlier research on cashout leakage – namely, that cashout leakage is a big problem, is driven by job changing, and is exacerbated by "forced distributions and [a lack of] portability of plans.”