News

Brown, Scott Introduce Bill to Increase Retirement Security

U.S. Senator Sherrod Brown (D-OH) announces on his website (https://brown.senate.gov) that he and U.S. Senator Tim Scott (R-SC) have introduced the bipartisan Advancing Auto-Portability Act of 2022, a bill that would allow a worker’s 401(k) savings account to be automatically rolled over from a previous employer to a new employer. The legislation would cut red tape to help Americans who change jobs frequently to increase retirement savings.

How Auto Portability Can Help Resolve America's Retirement Savings Crisis

Writing in Financial Adviser Magazine, noted private wealth expert Russ Alan Prince interviews Spencer Williams, RCH's founder, president & CEO about the company's new automatic feature, auto portability. The interview provides a clear overview of auto portability, including what it is, benefits to both plans and their participants, where the industry is heading and actionable steps that participants can take to maximize their retirement outcomes.

Can This Bill Protect Retirement Savings for Workers Who Change Jobs?

Writing in SmartAsset, Wola Odeniran reports on the implications of the Advancing Auto-Portability Act of 2022, which was introduced by U.S. Sens. Tim Scott (R-SC) and Sherrod Brown (D-OH). Odeniran notes that the proposed legislation would provide employers with modest financial incentives to adopt auto portability, while individuals would benefit from having a "valuable safety net" to avoid cashout leakage, early withdrawal penalties, or in some cases, forgetting a retirement savings account.

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SECURE 2.0 Momentum Surges with EARN Act’s Unanimous Committee Approval Today

401k Specialist Managing Editor Brian Anderson covers breaking, retirement-related legislative action in the US Senate, which voted unanimously in the Finance Committee to advance legislation that includes provisions for auto portability. Anderson's piece includes a synopsis of comments by Sen. Ron Wyden (D-OR) on the bill's four major reforms, including auto portability. Regarding auto portability, Anderson quotes Wyden as stating that the EARN Act is going to make portability "a whole lot simpler.”

EARN Act Clears Senate Finance Committee

PLANSPONSOR's John Manganaro reports on the 6/22/22 unanimous approval by Senate Finance Committee of the EARN Act, which includes provisions for auto portability. Manganaro refers to a statement released by Kevin Barry, president of workplace investing at Fidelity Investments, who notes that "[t]he EARN Act will also help facilitate automatic portability between retirement plans through so that individuals’ savings can follow them through job changes.”

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The Path(s) of Least Resistance

Writing in NAPA Net, the American Retirement Association's Chief Content Officer Nevin Adams examines the topic of 401(k) consolidation, or rather, the lack of it in our defined contribution system. Noting a litany of ills that result from unconsolidated accounts, Adams points to the recently introduced Advancing Auto Portability Act of 2022, which has the potential to create a new "path of least resistance" for small-balance job changers "that makes it easy for us to do the 'right' thing."

Senate Legislation Calls for Automatic 401(k) Transfers

PLANSPONSOR's DJ Shaw examines the Advancing Auto Portability Act of 2022, introduced on 6/15/22 by Senators Tim Scott, R-South Carolina, and Sherrod Brown, D-Ohio. Referring to Senator Scott's press release, Shaw quotes Senator Scott, Alight Solutions EVP Alison Borland and RCH President & CEO Spencer Williams.

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Senators introduce bipartisan auto-portability bill

P&I Washington, DC reporter Brian Croce covers the bipartisan bill introduced in the Senate by Sens. Tim Scott, R-S.C., and Sherrod Brown, D-Ohio -- the Advancing Auto Portability Act of 2022. Croce highlights the key features of the proposed legislation, quotes Sens. Scott and Brown, and notes that "[t]he bill has earned support from a wide swath of the retirement industry." Croce quotes RCH founder, president and CEO Spencer Williams, who praises the bill's bipartisan sponsors, while characterizing the legislation as "a huge win for America's hardworking retirement-savers."