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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including RCH Auto Portability
401k Specialist Managing Editor Brian Anderson reports on the "Great Leap Forward" for RCH Auto Portability represented by the 9/21/21 announcement by Vanguard that it will begin providing plan sponsors with the auto portability solution to simplify small-balance 401k rollovers, expected to launch in mid-2022.
Writing in 401k Specialist Magazine, RCH's Tom Hawkins recaps a 9/13/21 Employee Benefit Research Institute (EBRI) webinar (The Impact of Proposed Legislative Changes on Retirement Income Adequacy). In the webinar, EBRI Research Director Jack VanDerhei presented an analysis of pending legislative changes, including automatic contribution plans and arrangements (ACPAs), paired with a refundable saver’s credit. Unsurprisingly, the benefits for these policy initiatives were quite large. However, what was truly surprising was the sheer magnitude of incremental benefits delivered by the addition of auto portability, significantly paring retirement shortfalls for 35–39-year-olds, across all race and ethnicity categories.
Writing in 401k Specialist Magazine, Editor-in-Chief John Sullivan astutely links the unusually high turnover in labor markets (the "Great Resignation") to the need for auto portability. Disproportionately affecting Black and Hispanic Americans, Sullivan writes that this unprecedented turnover could "potentially wreak havoc with orphaned retirement accounts and missing participants" and further states "[i]f ever there was a time—and need—for auto portability, this may be it."
Writing in 401k Specialist Magazine, RCH's Tom Hawkins examines the unintended effects that can result from retirement savings public policies that would dramatically expand access to, and participation in, defined contribution plans. While the benefits are impressive, additional undesired consequences can arise that are antithetical to the policies’ original intent, including increased cashout leakage, missing participants, uncashed checks and forgotten/stranded accounts. Understanding these highly predictable "second order" effects, Hawkins identifies plan-to-plan portability as an effective means of addressing them, while significantly boosting the overall policies’ benefits.
Don’t relegate lost and missing accounts to the lost and found — consolidate them in the retirement system
Writing in Employee Benefit News, RCH President & CEO Spencer Williams opines on draft provisions in SECURE 2.0 legislation that call for establishment of a “lost & found” – including housing sub-$1,000 balances for all terminating 401(k) participants. As proposed, Williams observes that simply moving sub-$1,000 balances to the PBGC does little to reduce cashouts or stranded savings and offers auto portability as a “far more constructive method” to reduce cashouts and to promote consolidation of retirement savings.
The 401k Wire's Neal Anderson speaks with Tom Johnson, legendary veteran retirement industry executive and former RCH EVP of Public Policy. Johnson, ever the professional, discusses his experiences with RCH and with RCH's President & CEO Spencer Williams, and has high praise for Renee Wilder Guerin, who has taken over his role with the firm. Johnson also explains that he'll continue in a consulting role with RCH until the end of 2021.
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Retirement Clearinghouse hits $10B in consolidated retirement assets, pushes forward with automated future
The Charlotte Business Journal's Caroline Hudson speaks with RCH EVP & Chief Sales Officer Neal Ringquist to get an update on RCH's explosive growth, including the firm's recent announcement on surpassing $10 billion in retirement account consolidations. Ringquist offers Hudson a primer on consolidation, addressing the topic from multiple perspectives, and goes on to describe the key drivers of the firm's future growth, including the relationship with Alight Solutions, as well as auto portability.
Cindy Hounsell, Founder & President of the Women’s Institute for a Secure Retirement (WISER) and Forbes contributor, writes eloquently about the woes of cashout leakage, while offering readers good news. Auto portability, says Hounsell, is "a technology-based solution developed by Retirement Clearinghouse" that can help ensure that savers' "401(k) savings move automatically from their previous employer’s plan to their new employer’s." Hounsell cites EBRI data that pegs auto portability's system-wide benefits at $1.5 to $2.0 trillion, indicating that "much of that savings will belong to the people who need it most" including women, minorities and lower-income workers.