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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including Auto Portability
Let’s Help People Save Seamlessly Over a Career
Fiona Greig, Ph.D., and global head of investor research and policy in Vanguard’s Investment Strategy Group, authors a guest piece in PLANSPONSOR, where she advocates for three ideas "that will help workers save and invest seamlessly, even as they switch jobs." Greig calls for preserving and consolidating assets and strongly encourages employers to promote auto portability, as delivered by the Portability Services Network. Greig takes the position that the automatic transfer of small balances would offer a "far better alternative to sending a check to the worker’s home, and it could promote consolidation of retirement accounts."
More SECURE 2.0 Retirement Enhancements Kick in This Year
Writing in Kiplinger's Personal Finance, Mike Dullaghan, Director of Sales Execution for Franklin Templeton, runs down the new SECURE 2.0 provisions that will become fully-enabled in 2025. Dullaghan informs readers that the auto portability provision "makes it easier to transfer your retirement savings from one employer’s plan to another when you change jobs. It helps ensure that your retirement savings stay with you, no matter where you work."
Stage is set for improving retirement readiness beyond ERISA milestone
Writing in Employee Benefits News, Retirement Clearinghouse (RCH) and Portability Services Network (PSN) President & CEO Spencer Williams looks to the past and has his eye on the future, as ERISA celebrates its 50th anniversary. Williams chronicles key participant-centric technologies that have emerged, including daily valuation, automatic enrollment and target date funds. Looking ahead, Williams points to the most impactful developments, including the formation of the Portability Services Network, which has embraced auto portability, “making it easy for participants to bring their retirement savings with them from job to job until retirement” and “optimiz[ing] what auto enrollment and target-date funds can do for American workers saving for retirement.”
Considering Auto-Portability for Your Retirement Plan?
Alexander Mattingly, attorney for employee benefits law firm Bricker Graydon, offers his perspective on the plan sponsor adoption of auto portability, noting that his firm has "noticed an increasing number of employers reaching out with questions about whether they should have their defined contribution plan join the auto-portability network" while adding that "there is no doubt that auto-portability will be beneficial for participants and the retirement industry as a whole." While acknowledging auto portability's benefits, Mattingly generally takes a risk-adverse "wait and see" posture, noting that plan sponsors must accept additional fiduciary responsibilities in order to adopt the new feature.
Portability Services Network Expands Impact
Everhart Advisors, a large 401(k) advisory firm, covers the recently-announced expansion of the Portability Services Network (PSN), writing that the organization "has now grown to include three additional providers, covering over 15,000 retirement plans and 5 million members." The piece quotes PSN & RCH Chairman Robert L. Johnson, cites RCH's research and provides readers with the current operational status of the six owner-member recordkeepers.
Prepare for Upcoming Changes to Retirement Plans for 2025
The Wagner Law Group's John Schultze, writing in JDSupra.com, informs readers about the upcoming SECURE 2.0-driven retirement plan changes that will formally take effect in 2025, including "automatic portability" for small terminated participant balances below $7,000. Schultze briefly outlines the elements of the legislation, and observes that "[m]any service providers have formed a consortium to facilitate automatic portability services."
Preparing for Next Round of SECURE 2.0 Provisions
PlanAdviser's Alex Ortolani takes stock of "another round of SECURE 2.0 Act of 2022 provisions....set to take effect at the start of the new year" including those affecting auto portability. Ortolani writes: "Another important development in 2025 is allowance for the automatic transfer of retirement savings from a default individual retirement account to a new employer’s retirement plan. The optional provision is intended to make it easier for employees to keep their savings in an employer-based plan when they switch jobs, with the potential to reduce cash-outs from the tax-advantaged system." Ortolani also notes the recent announcement from the Portability Services Network (PSN) regarding auto portability's adoption by 15,000 plans representing 5 million active participants.
401(k) Real Talk Episode 133: December 11, 2024
Wealth Management's Fred Barstein, host of 401(k) Real Talk, summarizes the retirement industry's key news of the week, and examines the recent announcement from the Portability Services Network (PSN) that it has signed up 15,000 plan sponsors representing 5 million participants after only 1 year. Barstein states that the announcement represents a "milestone as recordkeepers have finally come together to create a data protocol which could lead to further cooperation in sharing data and facilitating retirement income" while noting that PSN is "looking for more recordkeepers to join."
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