Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
Concerned about cybersecurity? Here’s how to protect 401(k) plans
In his latest column in Employee Benefit News, RCH President & CEO Spencer Williams examines the positive effect auto portability could have on minimizing the cybersecurity threat to America's retirement system. As Williams observes, the scope and scale of cyber-attacks are escalating, and the retirement system is mobilizing to increase protections. Fortunately, says Williams, the same solution designed to address the industry's proliferation of small, stranded accounts -- auto portability -- can augment cybersecurity efforts through consolidation processes, leaving participants and their savings more secure.
EBRI Webinar Examines Impact of Tenure on Retirement Savings
RCH's Tom Hawkins summarizes the April 10th EBRI webinar Trends in Employee Tenure, which offered EBRI’s latest
research examining broad employee tenure trends, and the impact that shorter
tenure has on retirement savings. The webinar’s presenters included Craig
Copeland, EBRI and Spencer Williams, Retirement Clearinghouse (RCH), and was
moderated by Stacy Schaus, Schaus Group LLC. In his portion of the
presentation, Williams introduced the concept of “synthetic tenure” – whereby
enhancing system-wide portability -- particularly for small accounts -- enables
participants to preserve their savings through job changes, mirroring the
success of EBRI’s longer-tenured, “consistent participation” population.
America's 401(k) System is Unsustainable - Let's Fix It
On Earth Day 2019, as we focus on creating a sustainable and eco-friendly environment, it's worth considering how the application of similar principles would benefit our retirement system. America’s 401(k) system is unsustainable – urgently requiring an upgrade to effectively deliver on its intended goal – helping millions of Americans enjoy a timely and comfortable retirement. The good news is that we're beginning to see important signs of action that could ultimately address the problem.
Auto Portability: A much-needed upgrade for automatic rollover programs
In the 2nd installment of his five-part series in 401k Specialist "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how auto portability, by extending and enhancing elements of automatic rollovers, establishes a new standard of participant care. Auto portability, writes Hawkins, protects participants by: 1) minimizing time spent in a safe harbor IRA, 2) eliminating the need to cash out balances less than $1,000, 3) enhancing participant communication, 4) formally integrating a robust address location search and 5) establishing a transparent, simple & straightforward fee structure.
How Auto Portability Serves Participants’ Best Interests - Part 3: Auto Portability Could Lower Plan Expenses
In the 3rd installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how a program of auto portability can serve to lower plan expenses by 1) reducing small-balance accounts and 2) increasing plan assets. To illustrate these benefits, Hawkins uses the Auto Portability Simulation (APS) to model a hypothetical, 10,000 participant plan over 40 years, with and without auto portability.
Future of Retirement: EBRI Expert Says it Includes Auto Portability
Jack VanDerhei, EBRI Research Director, envisions a critical role for auto portability in solving America's retirement crisis. In a recent symposium conducted by TheStreet in New York, VanDerhei identified four key retirement challenges -- plan coverage, long-term care costs, longevity and leakage. VanDerhei predicted that leakage will be addressed when auto portability "become[s] a part of the retirement landscape" and "little account balances, which are really highly-susceptible to being cashed out" are automatically consolidated into larger 401(k) balances.
Cybersecurity is Augmented by Auto Portability
In his latest column in Consolidation Corner, RCH President & CEO Spencer Williams examines the positive effect that auto portability could have on minimizing the cybersecurity threat to America's retirement system. As Williams observes, the scope and scale of cyber-attacks are escalating, and the retirement system is mobilizing to increase protections. Fortunately, says Williams, the same solution designed to address the industry's proliferation of small, stranded accounts -- auto portability -- can augment cybersecurity efforts through consolidation processes that utilize best security practices, leaving participants and their savings more secure.
Tax Day is coming — a perfect time to teach millennials why they shouldn’t cash out
April 15 is just around the corner. While many Americans dread Tax Day, April 15 presents defined contribution plan sponsors with an opportunity to demonstrate their value as fiduciaries, and as financial wellness advocates. Anyone who is 18 or older, not a full-time student, and not claimed as a dependent on someone else’s tax return is eligible for a retirement savings contributions credit (also known as a saver’s credit). This tax credit rewards people for making eligible contributions to their IRAs or employer-sponsored retirement plans. In his latest article in Employee Benefit News, Retirement Clearinghouse CEO Spencer Williams advocates for Millennials to invest the credit in their retirement plan, rather than spend it.
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