Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
How Socially Responsible Corporations Will Solve the 401(k) Cashout Crisis
Writing in the Consolidation Corner blog, RCH's Tom Hawkins makes the case that socially conscious private-sector corporations will soon solve the nation's 401(k) cashout leakage crisis by fully-embracing plan-to-plan portability, including auto portability. Three key developments drive Hawkins' conclusions, including 1) a growing understanding of the problem and its societal impacts, 2) access to a viable solution and 3) clear acknowledgment of a responsibility to act for the benefit of society. Hawkins further notes that this view is being echoed in retirement research & public policy circles.
Auto-Portability: What it is, Why it’s Needed, and How it Will Strengthen Retirement Security
Georgetown University's prestigious Center for Retirement Initiatives (CRI) makes clear their advocacy for solving the nation's cashout leakage problem through the application of auto portability. A team of research analysts (Andrew Green, Benjamin Roth) along with CRI executive director Angela Antonelli, details the negative societal impact of cashout leakage and makes a strong case for the adoption of auto portability, a solution that research indicates will deliver significant benefits to minorities. The team cites the growing support for auto portability, including bipartisan political support, and concludes that "plan sponsors should take action to further facilitate the adoption of auto-portability, and in doing so, improve the retirement security of millions of Americans."
There Is An Easy Way To Avoid Billions In Lost Retirement Savings
In her latest column for Forbes, Angela Antonelli, executive director of Georgetown University's Center for Retirement Initiatives (CRI), makes clear her advocacy for solving the nation's cashout leakage problem through the application of auto portability. Antonelli, a noted retirement researcher and public policy expert, details the negative societal impact of cashout leakage, before making a strong case for the adoption of auto portability, a solution that she believes will deliver particular benefits to minorities. Antonelli concludes with a clear call to action, stating that "we have a solution and it is time to get it done."
How Sponsors Can Help Minorities Save More for Retirement
In his latest byline in the Consolidation Corner blog, RCH President & CEO Spencer Williams addresses the cashout leakage crisis, which disproportionately affects minorities, including African-Americans and Hispanics. Auto portability, says Williams, can make all the difference in solving the crisis, but requires that "sponsors themselves, as well as their recordkeepers, take the next step by implementing....auto portability" -- an action which he characterizes as being completely consistent with a recent public statement by the Business Roundtable, and endorsed by 181 CEOs of the nation's largest corporations.
For Every Dollar Saved For Retirement, At Least 20 Cents Is Withdrawn Too Early
According to Forbes retirement contributor Elena Botella, Americans not only save too little for retirement, they don't keep enough of what they save. Botella examines the phenomenon known as "leakage" and reveals that it's a big problem -- where 20 cents of every dollar saved for retirement is withdrawn too early. Botella cites Retirement Clearinghouse's DOL-approved auto portability program as a viable solution to leakage, delivered through a network of retirement plan recordkeepers.
The New Age of 401(k) Plan Portability
Writing in 401kSpecialist, RCH's Tom Hawkins identifies clear, across-the-board indications that America's defined contribution (DC) system is entering a "new age" of plan-to-plan portability. Portability, Hawkins contends, is the "missing ingredient" that, when added to 401(k) plans, will resolve the damaging disconnect between America's highly-mobile workforce and their immobile retirement savings.
Spencer Williams Examines the Migratory Patterns of Job-Changers in Latest EBN Column
In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams utilizes EBRI data to examine the migratory patterns of job-changing participants. Looking specifically at the size of their former employers' plans (expressed in terms of numbers of participants) compared to the size of their most-recent active plan, Williams finds that the vast majority (82.98%) of these participants go to an employer with a plan equal in size, or larger than, their former employer’s plan. Only 17.02% of participants go to employers with smaller plans, and a mere 1.9% leave employers with large plans to go to an employer with a small plan (less than 100 participants). This data, says Williams, should significantly allay industry concerns that the adoption of auto portability for small balances could result in harmful participant outcomes.
RCH Auto Portability "Broke New Ground" in 2019, Says Law Firm Examining ERISA Guidance
Writing in Lexology.com, the law firm Eversheds Sutherland LLP addresses notable 2019 ERISA guidance promulgated by the Department of Labor, including Advisory Opinions, Field Assistance Bulletins and Prohibited Transaction Exemptions (PTEs). For the 7 PTEs finalized in 2019, they single out RCH and auto portability, stating: "One exemption broke new ground. PTE 2019-02 granted relief for RCH’s auto-portability program, with respect to certain fees charged in connection with the transfer of accounts to the plan of a participant’s new employer."
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