News

Does Portability Services Network preserve retirement savings? Early evidence

New research released by the Vanguard Group (Does Portability Services Network preserve retirement savings? Early evidence) reveals that auto portability delivered through the Portability Services Network (PSN) dramatically reduces retirement savings leakage among workers with small account balances. Vanguard's analysis found that cash-out rates for 401(k) balances under $1,000 fell from approximately 50% before PSN adoption to about 9% after adoption, demonstrating that auto portability is highly effective at preserving retirement savings for workers most likely to cash out when changing jobs. The study also found that PSN is successfully reaching younger, lower-income, and highly mobile workers, the population most vulnerable to retirement leakage. In addition to improving participant outcomes, PSN provides operational benefits for plan sponsors by reducing stranded accounts, uncashed checks, and administrative burdens associated with terminated participants. The report concludes that auto portability shows meaningful early success as retirement-system infrastructure, with the potential for even greater impact as industry participation expands.

Retirement Accounts to Get a Government Match

Writing in the Epoch Times, freelance personal finance reporter Javier Simon examines the Saver's Match program, noting that retirement policy experts expect the program to significantly increase retirement savings participation and balances among low- and moderate-income workers. To support that conclusion, Simon cites research conducted by Retirement Clearinghouse, which projected that the Saver’s Match could benefit approximately 21.9 million retirement savers annually, and potentially encourage an additional 8.5 million new savers to begin saving for retirement, underscoring the program's projected impact on retirement preparedness nationwide.

A Step Forward, But Will Standardized Forms Fix Retirement System Fragmentation?

Writing in 401k Specialist, RCH’s Tom Hawkins provides his point of view on IRS Notice 2026-49 (Guidance on Section 324 of the SECURE 2.0 Act with Respect to Rollovers), which proposes four model forms and a five-step process designed to facilitate plan-to-plan portability. While Hawkins views the proposed guidance as “a welcome and constructive development” he also makes the case for a market-driven digital infrastructure that would more fully address the problem of systemic friction in our retirement system.

Previously featured in RCH's Consolidation Corner

Analyzing The Latest Regulatory Updates For Auto Portability

In an interview with wealth guru Russ Alan Prince appearing in Financial Advisor Magazine, Michael Kreps of the Groom Law Group provides his host with a thorough run-down on pending DOL guidance on auto portability. Kreps also addresses other related topics, including the ability to transfer Roth IRA balances, as well as questions about sub-$1,000 balances. Kreps closes the discussion with a point for the plan advisor audience, stating: "advisors should be aware that there is no cost to the sponsor for auto portability. The only cost for the program is a one-time transfer fee paid from the account at the time the assets are rolled into (not out of) a 401(k) plan."

Auto-Portability Final Rule Nears Final Stage

Writing in PSCA News, content writer & reporter Paul Mulholland addresses the pending status of the DOL's final rule on auto portability transactions. Mulholland indicates that the proposed rule has now been sent to the Office of Information and Regulatory Affairs, moving the DOL closer to promulgating final rules for auto portability, the service delivered by the Portability Services Network to reduce retirement plan leakage and to deliver seamless, plan-to-plan portability for small accounts.

Financial Literacy Isn't Just About Saving -- It's About Protecting What You've Earned

Writing in Kiplinger.com, RCH President & CEO Spencer Williams makes a compelling case for retirement savings preservation to become a pillar of financial literacy, alongside learning to save and invest. Williams provides real-world examples of the power of preservation and offers readers with four ways to hold onto their savings in the face of life events.

Plan Churn: The Hidden Threat to a Mobile Workforce’s Retirement Savings

Writing in 401k Specialist, RCH’s Tom Hawkins examines the phenomenon of “plan churn” – which he defines as the ongoing incidence of plan terminations and changes in plan recordkeepers. When combined with a highly mobile workforce, plan churn can create a “perfect storm” that magnifies the risk of cashout leakage as well as the problem of left-behind accounts. Plan churn, asserts Hawkins, can be best addressed by automated account consolidation, as identified in Retirement Clearinghouse’s vision of a digital clearinghouse model for the defined contribution system.

Previously featured in the RCH Consolidation Corner Blog

How Flexible Can Annuities Be?

Writing in PLANSPONSOR, Elizabeth Harris examines how today's annuity solutions are evolving to provide both guaranteed lifetime income and greater participant flexibility. Retirement Clearinghouse (RCH) Chief Marketing Officer Tom Hawkins shares his perspective on the importance of portability and preserving retirement savings as workers change jobs, highlighting how flexible retirement income solutions can better meet the needs of today's increasingly mobile workforce. Hawkins' comments reinforce Retirement Clearinghouse's commitment to helping participants maintain continuity in their retirement savings while expanding access to lifetime income options.