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Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
401(k) Auto-Portability Could Boost Retirement Savings by Billions
NAPA Net's Ted Godbout reports on a new EBRI study, released 8/15/19, that assesses the impact of auto portability on the nation's 401(k) system. Godbout highlights the benefits of auto portability to the entire system and to specific demographic groups, as well as the benefits of the feature when considered in tandem with other policy initiatives. Godbout concludes by noting that "these latest findings come on the heels of Retirement Clearinghouse receiving final approval from the Department of Labor granting relief from ERISA’s prohibited transaction restrictions to receive fees in relation to its auto-portability program, allowing the firm to move forward."
New EBRI Issue Brief Analyzes Auto Portability's Impact on Preserving Retirement Savings
On 8/15/19, the Employee Benefit Research Institute (EBRI) published a comprehensive Issue Brief addressing the impact of auto portability on preserving retirement savings lost to 401(k) cashout leakage. Authored by Jack VanDerhei, EBRI's Director of Research and announced in an EBRI press release, the analysis utilizes EBRI's Retirement Savings Projection Model (RSPM) to quantify auto portability's impressive benefits 1) as a standalone policy initiative, 2) for specific demographic segments and 3) in tandem with other policy initiatives that expand access to workplace retirement savings plans. Critically, the Issue Brief also highlights the ongoing severity of the 401(k) cashout leakage problem, which their model estimates at $92.4 billion per year as of 2015, and "representing a serious problem that affects the potential of 401(k) plans to produce adequate income replacement in retirement."
Defined Contribution Auto-Portability Program Is First To Gain DOL Approval
Mercer's Law and Policy Group reports on the finalized prohibited transaction exemption (PTE) obtained by Retirement Clearinghouse from the U.S. Department of Labor (DOL) for the RCH Auto Portability program. The article also addresses the broader regulatory framework, including Advisory Opinion 2018-01A, which identified certain fiduciary responsibilities of plan sponsors and of RCH.
DoL Green-Lights a Newer Auto Feature
The 401kWire covers the "long-awaited news from the Department of Labor" which arrived 7/31/19, in the form of a prohibited transaction exemption (PTE) for the RCH Auto Portability program. The publication quotes RCH President & CEO Spencer Williams, who states "it's been a long time in the making, and we're dancing in the streets right now, we're very happy with the final action."
DOL Eases Auto Transfer of Left-Behind 401(k) Dollars to New Plans
SHRM's Stephen Miller reports on the ramifications of the DOL's 7/31/19 finalized prohibited transaction exemption (PTE) for RCH's Auto Portability program. Quoting RCH President & CEO Spencer Williams, the new guidance, when paired with the prior November 2018 Advisory Opinion, provides 401(k) plan sponsors with "guardrails they need to safely adopt auto portability." Miller's piece also quotes Jan Jacobson, senior counsel for the American Benefits Council, who states that auto portability "could significantly lessen the problems plan sponsors face in trying to locate missing 401(k) plan participants."
401(k) Automatic Portability Gets Final DOL Nod
In his 8/06/19 article, Ignites reporter Emile Hallez addresses the US Department of Labor's "green light" to the RCH Auto Portability program, in the form of a final prohibited transaction exemption (PTE), issued 7/31/19. Hallez extensively quotes RCH President & CEO Spencer Williams, who emphasizes the importance of the PTE to the adoption of auto portability, as well as helping to "cure the missing participant problem" which he further characterizes as "a subject of intense interest among plan sponsors and recordkeepers." RCH EVP Tom Johnson is also quoted, offering his historical perspective on regulatory efforts and ongoing engagement with large recordkeepers.
DOL Gives 401k ‘Auto Portability’ Major Boost
In his 8/6/19 article, 401k Specialist Editor-in-Chief John Sullivan addresses the DOL's recent guidance for the RCH Auto Portability program, stating that "the auto revolution in retirement plans (auto-enrollment, escalation, deferral) adds another option with the release last week of the U.S. Department of Labor’s (DOL) final Prohibited Transaction Exemption (PTE) for auto portability." Sullivan goes on to quote RCH President & CEO Spencer Williams, who states that published comments from industry trade groups regarding auto portability were “overwhelmingly positive” while also pointing out the "legal protections for plan sponsors to help small-balance participants preserve their savings."
DOL Exemption Paves Way for Auto Portability
PLANSPONSOR's Lee Barney covers the DOL's final prohibited transaction exemption (PTE) for the RCH Auto Portability program, interviewing RCH President and CEO Spencer Williams. In the article, Williams characterizes the DOL's action as the final regulatory guidance required for plan sponsors and recordkeepers to pursue the program, indicating that he is very encouraged, having worked the issue for five years, adding: "we are very passionate about creating a new benefit for participants and solving the leakage issue.”