Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
COVID-19 Pandemic Demonstrates the Need for Institutionalized Portability
Writing in Consolidation Corner, RCH President & CEO Spencer Williams examines the disruptive effects of the COVID-19 pandemic on America's retirement savers, and makes a persuasive case for the systemic, institutional adoption of auto portability as a means to help rebuild and to preserve retirement savings over the long-term. In the near-term, Williams observes that reduced participant mobility make this an opportune time for sponsors to update participant addresses.
The Pluses of Portability
In their latest "Inside Angle" column featured in the April-May 2020 PLANSPONSOR Magazine edition, Groom Law Group's Steve Saxon and George Sepsakos advise fiduciaries on the "pluses of portability" -- specifically addressing the improvements auto portability confers upon the 15 year-old automatic rollover (ARO) feature. Auto portability, writes the authors, "is consistent with the DOL’s broader view that plan fiduciaries have an obligation to locate missing participants and to pay benefits." To this end, they urge sponsors & fiduciaries -- when reviewing their ARO programs -- to consider incorporating auto portability in order to best meet these core fiduciary requirements.
EBN: The Institutionalization of Portability is Key to Reducing Cash-Out Leakage
In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams identifies plan-to-plan portability as a vital feature to prevent cash-out leakage. Similar to the progress that's been made over the past decade in reducing plan fees, Williams makes the case that the inevitable "institutionalization" of portability will dramatically reduce cash-out leakage and maximize participants' retained savings. Williams advocates for the adoption of a dual portability model, comprised of auto portability for small balances and a consent-based, concierge service for participants with larger balances.
Extend the Spirit of the CARES Act to Automatic Rollovers
In light of the COVID-19 crisis, RCH's Tom Hawkins examines another burden borne by millions of participants, when they’re furloughed or laid off and become subject to ‘traditional’ automatic rollover IRAs – where they’ll likely face high levels of cashouts, predatory fees and barriers to exit. Now, more than ever, it’s important for sponsors to act and to redress this burden. For sponsors utilizing traditional automatic rollover IRAs, Hawkins urges them to demonstrate their caring through three actions that will help address the problem and will deliver significant societal benefit.
Let’s Extend the Spirit of the CARES Act to Automatic Rollover IRAs
In light of the COVID-19 crisis, RCH's Tom Hawkins examines another burden borne by millions of participants, when they’re furloughed or laid off and become subject to ‘traditional’ automatic rollover IRAs – where they’ll likely face high levels of cashouts, predatory fees and barriers to exit. Now, more than ever, it’s important for sponsors to act and to redress this burden. For sponsors utilizing traditional automatic rollover IRAs, Hawkins urges them to demonstrate their caring through three actions that will help address the problem and will deliver significant societal benefit.
P&I: Preston Rutledge's legacy to include auto portability
Covering breaking news, P&I's Washington, DC reporter Brian Croce informs readers about the pending departure of Preston Rutledge, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). With no official announcement by the DOL, Croce turns to Michael Kreps, a principal at Groom Law Group, for comment. Kreps states in an email that "Preston is a dedicated public servant, and his legacy at the department includes important work on pooled retirement plans and auto portability" with Croce adding that auto portability "has a goal of significantly reducing plan leakage and missing participants."
401k Specialist Magazine Features Auto Portability
Issue 2, 2020 of the 401k Specialist Magazine features an article by RCH's Tom Hawkins. In his piece "The New Age of 401(k) Portability", 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.
How Does Auto Portability Work? Watch the Video
Looking for a quick primer on how auto portability works? Watch the video embedded in this RCH Consolidation Corner article, which walks you through the four-step process. The video also introduces you to the key elements of participant communication that occur along the way. Enjoy!
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