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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including Auto Portability
No retirement plan sponsor likes the idea of dealing with uncashed distribution checks, nor do they wish to draw unwanted regulatory attention or to become embroiled in costly litigation. Unfortunately, many plan sponsors place themselves in precisely that spot, becoming unnecessarily over-burdened with unresolved uncashed checks, while inviting unwanted regulatory scrutiny and/or legal challenges by having flawed uncashed check policies. In his 2/19/24 opinion piece in 401k Specialist Magazine, RCH's Tom Hawkins lays out a "more-enlightened" approach to the problem of uncashed distribution checks, seeking to minimize their numbers, while simultaneously steering clear of the “red flags” that could land them in hot water.
Writing in the 'What's Around the Corner?' feature in the Jan-Feb 2024 magazine edition of PLANSPONSOR, Ed McCarthy asks industry experts where we are with key events and trends, and what's likely to emerge in 2024. McCarthy turns to RCH EVP Neal Ringquist for his views, and Ringquist delivers an update on auto portability, reporting progress in 2023 within the Portability Services Network (PSN), with Alight, Fidelity Investments and Vanguard completing their implementations and focusing on onboarding clients. Looking ahead to 2024, Ringquist notes that PSN's focus will be on "expanding the network of plans and recordkeepers" while achieving operational status for Empower, Principal Financial Group and TIAA. Finally, Ringquist notes the impact of "both the auto-portability provision and the mandatory distribution-limit increase to $7,000 under SECURE 2.0" which will lead to plan sponsor reviews of the new features.
BNN Breaking correspondent Muhammed Jawad writes a highly-supportive piece on auto portability, which he describes as "a digital solution launched by Retirement Clearinghouse." Jawad adds that auto portability "promises to revolutionize the retirement services industry by automating the transfer of small retirement accounts" and will "reduce cash-out leakage, preserve trillions in the retirement system, particularly benefit minority communities....[and] significantly improve the retirement prospects of countless Americans." Jawad notes the recent findings from RCH's Auto Portability Simulation (APS) model, writing that: "nationwide adoption of auto portability is estimated to reduce overall cash-out leakage from the U.S. retirement system by a staggering $355 billion and preserve an additional $1.6 trillion in savings."
CNBC Personal Finance Reporter Greg Iacurci takes a comprehensive look at the problem of 401(k) cashout leakage, as well as its most promising solution -- auto portability, as delivered by the Portability Services Network (PSN). In his analysis, Iacurci turns to industry experts, including RCH & PSN president & CEO Spencer Williams, EBRI's Craig Copeland and other researchers and academics. Iacurci quotes Williams as stating that auto portability is essentially a “very large exchange mechanism” within the 401(k) industry, and that the feature has promise in addressing the cashout leakage problem. Iacurci adds: "at 70% market coverage, auto portability is expected to reconnect about 3 million people a year with 401(k) accounts they left behind upon job change."
Financial Advisor Magazine's Russ Alan Prince interviews RCH & PSN president and CEO Spencer Williams, to discuss how auto portability can dramatically improve retirement outcomes for Americans. Williams gives Prince a primer on systemic cashout leakage, how and why the Portability Services Network was created and the key provisions of the SECURE 2.0 Act that address auto portability. Speaking directly to Prince's advisor-based readership, Williams asserts that auto portability is a "no-brainer benefit for their plan-sponsor clients....that can benefit individual clients and make a big difference in the lives of workers saving for retirement across the country over the long term."
'Portability' is set to boost and solidify $9.3 trillion 401(k) system by eliminating cash-outs, rollovers and fragmented (orphaned) plans
RIABiz's Brooke Southall, founder of RIABiz -- described as the "news, vision & voice for the advisory community -- writes about the DOL's "proposed rule [that] would implement Section 120 of the SECURE 2.0 Act" -- known as auto portability. In his piece, Southall voices his own views, and turns to industry experts, all of whom are positive about the recent developments and the future prospects for auto portability. Southall quotes Retirement Clearinghouse (RCH) and Portability Services Network (PSN) president & CEO Spencer Williams on the benefits of auto portability, and writes that large 401(k) recordkeepers "created a consortium for portability among themselves, with the technology of Retirement Clearinghouse."
PLANSPONSOR's Alex Ortolani reports on commentary from Assistant Secretary of Labor Lisa Gomez, the head of the DOL's Employee Benefits Security Administration (EBSA), who highlighted efforts by EBSA to advance final rules on auto portability. The proposed rules, which hit the Federal Register Monday, initiate a 60-day comment period that will end March 29. Ortolani writes that Gomez "highlighted the [auto portability] provision as one of several into which EBSA is digging in this year."
BenefitsPRO's Scott Wooldridge informs readers about "another step forward" for auto portability, when the Department of Labor's Employee Benefits Security Administration (EBSA) released its proposed rules associated with SECURE 2.0. Wooldridge provides a summary of the new rules, and quotes American Retirement Association (ARA) CEO Brian Graff as stating: “We appreciate the guidance provided by the DOL. Anything that reduces the rate of retirement plan leakage results in better outcomes for participants.”