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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including Auto Portability
In his latest piece in Wealth Management, Fred Barstein continues to examine the state of retirement income products in defined contribution plans. Barstein writes: "[i]n-plan retirement income has been a hot topic for decades yet it seems like the momentum is finally building." This, in part, could be driven by the advent of the new Portability Services Network, which Barstein characterizes as "the first industry data exchange which could address [defined contribution plan] transferability issues."
Fred Barstein, founder and CEO of The Retirement Adviser University (TRAU), sits down with Spencer Williams, president & CEO of Retirement Clearinghouse (RCH) and the Portability Services Network (PSN) to answer three probing questions about the new industry-led utility formed to accelerate the nationwide adoption of auto portability. Barstein asks Williams about PSN's purpose and how it came about, drills down on the data exchange mechanisms, and gets Williams' insights on the utility's roadmap for the future.
Writing in Wealth Management, Fred Barstein, Founder & CEO of The Retirement Adviser University (TRAU), examines the status of in-plan retirement income solutions. Barstein refers to "many conundrums the DC industry faces as we try to retrofit DC plans" including "the issue of transferability when a plan or participant switches record-keepers." On this point, Barstein states: "[t]here is hope as Fidelity, Alight and Vanguard, in collaboration with the Retirement Clearinghouse, recently created a data exchange called the Portability Services Network....to deal with smaller account transfers and leakage."
This Automatic 401(k) Rollover Legislation Could Protect Your Nest Egg And Help You Find Lost Retirement Money
Personal finance expert Brian J. O'Connor, writing in SmartAsset, examines new 401(k) rollover legislation -- the Advancing Auto-Portability Act of 2022 (H.R. 9252) -- introduced Oct. 28, 2022 by Rep. Brad Schneider (D-Illinois) – that "would create incentives for plan managers to automatically move the 401(k) account of workers changing jobs from the former employer’s plan to the new employer’s plan." O'Connor goes inside the legislation, notes its companion legislation in the Senate, and links the bills to recent actions by "Fidelity Investments, Vanguard Group and Alight Solutions – three of the largest 401(k) administrators – to create Portability Services Network, a consortium working with Retirement Clearinghouse to reconnect workers with old 401(k)s."
401k Specialist reporter Amanda Umpierrez reviews breaking research from Morningstar (Going Global: An Evaluation of Retirement Systems Around the World), which compares and contrasts various aspects of retirement savings systems around the world. Umpierrez writes: "[r]egarding auto-portability, each country varied in handling inactive vs. active accounts and employee movement. In Sweden, the U.S. and the U.K., employees must be proactive in changing and moving their accounts themselves."
Writing in Employee Benefit News, RCH Founder, President & CEO Spencer Williams examines the implications of research from Boston College's Center for Retirement Research (CRR). The CRR study found that the youngest Baby Boomers, with less access to defined benefit (DB) plans than their predecessors, are drawing down their 401(k)-based retirement savings at much faster rates, with many poised to run out of retirement savings by age 85. These findings underscore the need to preserve more 401(k) savings for younger generations, and according to Williams, the best way to do that is "to consolidate 401(k) savings accounts.....and to avoid making any premature cash-outs." Sponsors, writes Williams, "can....help participants save more for retirement, so they don’t outlive their savings, by adopting auto portability."
The Daily Wire's Ben Zeisloft examines Fidelity Investments' 3rd quarter retirement research release, which finds that average retirement savings declined for the third consecutive quarter amid a volatile stock market and pervasive economic pressures. The piece goes on to quote Fidelity Workplace Investing President Kevin Barry, who draws attention to auto portability, stating that the new feature “can play a crucial role in increasing retirement security for these Americans by automating the movement of an inactive retirement account seamlessly into the active account of a new employer’s plan, potentially preserving trillions of dollars in future savings.”
PLANSPONSOR's Alex Ortolani reports on Fidelity's press release featuring their Q3 2022 retirement analysis, and includes quotes from Kevin Barry, president of Workplace Investing at Fidelity Investments. Ortolani writes: "Fidelity’s Barry also spoke in the release to the importance of retirement savers not leaving behind savings plans when they change jobs. Just last month, the Boston-based firm joined with Vanguard and Alight to create a consortium to tackle the issue of 'cash-out leakage' from participants leaving behind small retirement accounts" and quotes Barry as stating that “[a]uto-portability can play a crucial role in increasing retirement security for these Americans."