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Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
In his article in BenefitsPro, RCH’s Tom Hawkins draws attention to the modern-day waste that occurs when 401(k) participants change jobs and prematurely cash out their retirement savings. Similar to America’s post-World War II “throwaway” culture which gave rise to modern recycling initiatives, Hawkins argues that the solution to 401(k) cashout leakage is auto portability, and predicts that it will catch on as key stakeholders acknowledge the severity of the problem, accept responsibility for solving it and act collaboratively to hasten auto portability’s widespread adoption.
In his 4/13/18 article, ASPPA Net's Ted Godbout examines key findings from the March 2018 RCH / Boston Research Technologies survey "The Mobile Workforce's Missing Participant Problem". Godbout covers the key highlights from the study, including the "remarkable" finding that 1/3 of the respondents had learned about accounts that they didn't realize they had, as well as the high percentage of respondents (60%) who would prefer an automated solution to update their address or consolidate their balances.
As we continue to make our way through the second quarter of 2018, now is a good time to reflect on defined contribution (DC) plan sponsor priorities for this year.
In his 4/02/18 article for 401k Specialist, Tom Hawkins asks plan sponsors to consider where they stand on encouraging rollovers into their 401(k) plan ("roll-ins") from new participants. Presenting the historical progression of roll-ins from 2012 to present, Hawkins then describes 3 levels of roll-in support that plan sponsors can offer. The most effective, says Hawkins, is Level 3, where plan sponsors adopt a facilitated roll-in service, which makes the process worry- and hassle-free for participants.
Over the past six years, there has been a steady drumbeat pointing the way to increased portability and in-plan consolidation (roll-ins) as the next big strategic focus for 401k plans.
In his March 29th 2018 article in Employee Benefit News, RCH’s Founder, President & CEO Spencer Williams argues that just as no man is an island, no employer-sponsored retirement plan is an island. He continues on to detail that new hires who join a plan all come from other companies, where they were likely enrolled in their former-employer 401(k) plans; and similarly, participants who leave a plan when they change employers have accrued 401(k) savings that they will likely want to take with them.
In her 3/21/18 article, 401KWire’s Bridget Doyle extensively quotes RCH’s CEO Spencer Williams on the 401(k) industry’s missing participant problem. As Williams explains, there was little or no existing research on the problem, which spurred his decision to conduct a survey and to “do it from the plan participant’s perspective.” The new study, The Mobile Workforce's Missing Participant Problem, was released this month, and revealed that the problem is “very dynamic and growing” according to Williams. As Williams notes, new solutions are likely to emerge, best practices are hard to define -- but account consolidation will play a critical role.
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RCH Founder, President and CEO Spencer Williams speaks with Rick Unser of 401(k) Fridays, taking on the old problem of missing participants, as well as auto portability, the new solution that may help keep participant information current, prevent cashout leakage and consolidate participants' retirement savings within the 401(k) system.