Media Coverage

DC industry must cooperate to resolve forgotten-accounts problem

Writing in InvestmentNews, contributor Fred Barstein addresses the issue of forgotten accounts, and turns to RCH President & CEO Spencer Williams for his views. Barstein writes "[w]hat is needed is a network of DC record keepers that share account information" and notes that Williams and RCH have been working on developing that "for more than a decade." Barstein quotes Williams, who states "no one argues against portability" while adding that "the network is the endgame" and requires "critical mass [to be successful]."

401k Retirement Savings: More Gone Than Forgotten

Writing in 401k Specialist, Tom Hawkins compares & contrasts the issue of ‘forgotten’ 401(k) accounts to its more problematic relative, 401(k) cashout leakage. In the piece, Hawkins takes the position that recent attention given forgotten accounts – via draft SECURE 2.0 legislation and the release of a drama-laden white paper – have created the mistaken impression that there’s a massive problem with forgotten 401(k) accounts, when in fact ‘forgotten’ 401(k) accounts are dwarfed by 401(k) cashout leakage, in terms of both their size and severity.

401(k) Retirement Savings: More ‘Gone’ Than ‘Forgotten’

Writing in RCH's Consolidation Corner, Tom Hawkins compares & contrasts the issue of ‘forgotten’ 401(k) accounts to its more problematic relative, 401(k) cashout leakage. In the piece, Hawkins takes the position that recent attention given forgotten accounts – via draft SECURE 2.0 legislation and the release of a drama-laden white paper – have created the mistaken impression that there’s a massive problem with forgotten 401(k) accounts, when in fact ‘forgotten’ 401(k) accounts are dwarfed by 401(k) cashout leakage, in terms of both their size and severity.

The Strong Case for a Retirement Savings ‘Lost and Found’

Writing in 401k Specialist Magazine, RCH's Tom Hawkins takes a deep dive into draft SECURE 2.0 provisions that dramatically expand the purpose, scope and scale of a Retirement Savings Lost & Found. Hawkins contends that the new provisions, as currently written, would create a massive, government-run repository of micro-balance accounts costing taxpayers millions, while failing to boost retirement security. Hawkins encourages Congress to return to an earlier Lost & Found model, while addressing the broader, small-balance account problem through policies that incentivize the adoption of auto portability.

More Than a Trillion Dollars Stuck in ‘Forgotten’ 401ks

Writing in 401k Specialist, Brian Anderson covers the release of a white paper from Capitalize, a new fintech firm that suggests that the problem of "forgotten" 401(k) accounts can be fully-addressed by offering "portability" to an IRA. After touching on the white paper's key findings, which borrow liberally from earlier RCH research, Anderson observes that the "problem is also being addressed by auto portability" by "moving them forward within the defined contribution system following job separations."

Re-Securing the Highest Purpose for a Retirement Savings Lost & Found

In his latest post in RCH’s Consolidation Corner blog, Tom Hawkins takes a deep dive into draft SECURE 2.0 provisions that dramatically expand the purpose, scope and scale of a Retirement Savings Lost & Found. The new provisions, contends Hawkins, would create a massive, government-run repository of micro-balance accounts costing taxpayers millions, while failing to boost retirement security. Hawkins encourages Congress to return to an earlier Lost & Found model, while addressing the broader, small-balance account problem through policies incentivizing the adoption of auto portability.

Auto portability can help 401(k) participants better prepare for retirement

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams addresses the dilemma facing employers, who are committed to promoting their employees’ financial wellness, but also confront the grim reality of excessive retirement savings leakage, exacerbated by the COVID-19 pandemic. By adopting auto portability, Williams asserts that plan sponsors can utilize "comprehensive benchmarks" that can “easily quantify their financial wellness efforts” while simultaneously meeting their fiduciary responsibilities.

Also featured in Financial-Planning.com

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.