News

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.

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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."

Financial Wellness Benefits Simplified by Auto-Portability

Picking up on a theme from RCH President & CEO Spencer Williams, 401kTV Managing Editor Steff Chalk examines the quantifiable financial wellness benefits that could be realized by plan sponsors and their participants, via the adoption of auto portability. Linking to an article previously authored by Williams in Employee Benefit News, Chalk runs down the litany of persuasive proof points offered by Williams, concluding: "we couldn't have said it better."

How financial wellness programs can encourage employee participation in retirement savings

Writing in Employee Benefit News, RCH President & CEO Spencer Williams examines the current state of financial wellness programs, and the challenges plan sponsors face in quantifying their benefits. Facilitating retirement savings portability -- by adopting auto portability for small balances or implementing an assisted roll-in program for larger balances -- can easily overcome this challenge by offering sponsors financial wellness initiatives that not only deliver excellent results, but can be readily measured.

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Why you should consolidate those 401(k)s and IRAs

CNBC personal finance reporter Greg Iacurci takes a look at the millions of Americans changing jobs each year, and concludes that consolidation of retirement savings -- particularly to a new workplace savings account -- is their best move. Stranded accounts, writes Iacurci, can cause a variety of problems, including forgotten savings, cash outs, sub-optimal investment choices and a difficult transition to retirement income. Iacurci quotes RCH President & CEO Spencer Williams, who states that “from a consumer perspective, the default should be 100% of the time to move your money [when changing jobs].”

Safe-harbor IRAs should not be a long-term retirement solution

Writing in Employee Benefit News, RCH President & CEO Spencer Williams observes that safe-harbor IRAs -- created by the EGTRRA-mandated automatic rollover process -- were never intended to be "permanent retirement savings vehicles." Too often, argues Williams, the relief plan sponsors realize from automatic rollovers comes at the expense of participant outcomes -- who experience high levels of cashouts, low investment returns and savings-depleting fees. With the advent of auto portability, participants will spend less time in a safe harbor IRA, and "plan sponsors no longer have to consider trading participant outcomes for administrative convenience."

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Can You Successfully Automate Your Retirement Savings?

Forbes contributor Rick Unser, a 401(k) plan consultant and host of the 401(k) Fridays podcast, looks to the future and predicts four key 401(k) automation features he believes will deliver significant benefits for participants. Citing job-changing as "one of the single most significant threats to a secure retirement" -- Unser identifies auto portability as an "emerging solution (that) will help with...the challenge" and "will move your retirement savings from your retirement plan at your old company to the retirement plan at your new one."

401(k) Plans & Auto Portability: Should Your Suite of Auto Plan Features Include Rollovers?

On 12/06/19, RCH Founder, President and CEO Spencer Williams recorded a podcast with Rick Unser of 401(k) Fridays. The hour-long discussion covered the long term impact of automatic enrollment, and the emerging auto concept of Auto Portability. Williams details what Auto Portability is, the retirement challenges it intends to solve, how it differs from today’s auto-cashouts or auto-rollovers and shares how employers or retirement service partners can get involved.