Auto Portability in the News

Browse the most comprehensive collection of articles in the media that feature auto portability.


Aug
23
2019

Newly Sanctioned Auto Portability Solution Could Boost Retirement Savings by Trillions

In her 8/23/19 article, carried in both PLANSPONSOR and PlanAdviser, reporter Rebecca Moore links the most-recent regulatory actions from the DOL on the RCH Auto Portability program with the 8/15/19 EBRI Issue Brief, which projects the overall, 40-year present value of auto portability at nearly $2 trillion. Moore addresses the key findings from the latest EBRI research, which include new projections of 401(k) cashout leakage ($92.4 billion in 2015), projections of auto portability as a standalone policy initiative, auto portability paired with other legislative proposals, and finally, the beneficial impact of auto portability on specific demographic segments.

Also featured in PlanAdviser

Aug
22
2019

EBN - The Safe Harbor IRA: Friend of Foe?

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams draws much-needed attention to the downside of traditional safe harbor IRAs. While plans can benefit by practices that remove small-balance accounts, Williams argues that this benefit may be illusory, as former plan participants will likely cash out or become “stuck” with multiple accounts that deplete their savings – both scenarios that could expose sponsors to potential liability. Auto portability, says Williams, can reverse this dysfunctional dynamic, achieving better outcomes for plans and participants alike.

Aug
22
2019

How Big is the 401k Cashout Leakage Problem (Really)?

In his five-part series in 401k Specialist, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his third article in the series, Hawkins examines the magnitude of the 401(k) cashout leakage problem, sharing new statistics recently supplied by EBRI, and offering some interesting comparisons so the reader can fully-grasp the enormity of the problem.

Aug
21
2019

The Magnitude of the 401(k) Cashout Leakage Problem

In his five-part series in Consolidation Corner, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his third article in the series, Hawkins examines the magnitude of the 401(k) cashout leakage problem, sharing new statistics recently supplied by EBRI, and offering some interesting comparisons so the reader can fully-grasp the enormity of the problem.

Aug
20
2019

Auto Porting Old 401(k) Balances Could Save $2T: Report

In his 8/22/19 article, Ingites' Emile Hallez reports on the Employee Benefits Research Institute (EBRI) 8/15/19 Issue Brief, which projects significant public policy benefits from the application of auto portability to the problem of cashout leakage. Auto portability, says Hallez, represents "a single policy change...[that]...could increase U.S. retirement savings by as much as $2 trillion over 40 years." Hallez then links the EBRI research to recent guidance issued by the DOL for the RCH Auto Portability program.

Aug
20
2019

The Safe-Harbor IRA: Friend or Foe?

In his latest Consolidation Corner blog post, RCH President & CEO Spencer Williams draws much-needed attention to the downside of traditional safe harbor IRAs. While plans can benefit by practices that remove small-balance accounts, Williams argues that this benefit may be illusory, as former plan participants will likely cash out or become “stuck” with multiple accounts that deplete their savings – both scenarios that could expose sponsors to potential liability. Auto portability, says Williams, can reverse this dysfunctional dynamic, achieving better outcomes for plans and participants alike.

Aug
19
2019

401k Auto Portability ‘Significantly Reduces’ Retirement Savings Gap: EBRI

401k Specialist Editor-in-Chief John Sullivan reviews EBRI's latest Issue Brief, which highlights the problem of 401(k) cashout leakage, while projecting impressive, beneficial impacts of auto portability on addressing the leakage issue. As Sullivan article leads off, "the numbers are in, and solid" and include analysis of auto portability's benefits as a standalone initiative, as well as in tandem with other policy initiatives that expand plan access. Regarding policies that expand access, Sullivan quotes EBRI Research Director Jack VanDerhei, who states “our analysis further suggests that an auto portability initiative that reduces plan leakage can materially augment such efforts.”

Aug
17
2019

Auto portability would reduce plan leakage – EBRI study

P&I's Brian Croce reports on the new EBRI study examining the impacts of auto portability, finding that the plan feature "would significantly reduce plan leakage" -- estimated by EBRI at $92.4 billion per year. Croce recaps the impressive benefits projected for auto portability under EBRI's RSPM model, and notes the recent actions by the U.S. Department of Labor, who "gave Retirement Clearinghouse the green light to expand its auto-portability program, which is expected to reduce plan leakage and missing participants."

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