News

Auto Portability: A Potential Game-Changer for Retirement Savings in America

401kTV.com's Fred Barstein takes stock of the recent announcement by the Portability Services Network (PSN) that it has signed up 15,000 plans representing 5 million participants for the auto portability plan feature. Barstein characterizes auto portability as "a powerful innovation....that has the potential to preserve retirement savings for millions of American workers, particularly those from minority communities." Barstein closes his analysis by noting that "auto portability is an opportunity to make meaningful, long-term financial impact for employees across diverse backgrounds and dramatically minimize leakage from the nation’s retirement plans."

Talking Points: The Path of Less Resistance

Nevin Adams, writing in NAPA Net, discusses the 12/3 announcement by the Portability Services Network (PSN) that, in its first year of operation, has seen auto portability adopted by over 15,000 plans with 5 million active participants. Adams characterizes the announcement as "a big deal" -- where auto portability could deliver $1.6 trillion in benefits over 40 years, including $744 billion for minorities, while praising RCH, "whose long-term patience and commitment made the concept of auto-portability a reality."

401(k)-Created Millionaires Surge to New High

NAPA Net's Ted Godbout reports on the release of Fidelity Investment's Q3 2024 Retirement Analysis, where the firm offers key insights into the retirement sector. With a strong focus on average savings balances and rates, the study also prominently features Fidelity's year 1 results for the adoption of auto portability, where they've already signed up approximately 6,000 plans representing 2.2 million participants for the new feature.

Also featured in ASPPA Net

Fidelity Highlights Auto-Portability as Way to Combat Cash-Outs in Q3 Report

PLANSPONSOR's Natalie Lin reports on the release of Fidelity Investments' Q3 2024 Retirement Analysis, where the firm summarized key developments in the retirement sector. In the report, Fidelity announces that, as of October 2024, it has signed up over 6,000 plans for auto portability, representing 2.2 million participants. Fidelity's disclosure complements an announcement earlier in the week by the Portability Services Network. Lin quotes Fidelity's Sterling Ingui as stating: “plan sponsors are increasingly beginning to understand the benefits of auto-portability, including increased participant satisfaction, the ability to attract and retain workers, and an expansion of their auto services suite—all at no additional cost to the plan sponsor.”

Also featured in PlanAdviser

Dressing Up Traditional Automatic Rollovers

Writing in 401k Specialist, RCH’s Tom Hawkins describes learning about the existence of so-called “world-class” automatic rollover IRA services which lay claim to unspecified, premium features. In his article, Hawkins characterizes them as “old-school, traditional automatic rollover IRAs” which place participants in high-fee, safe harbor IRA “landfills” where their small balances languish. What’s needed, writes Hawkins, is “not faux fancy features – it’s a low-fee, transitional safe harbor IRA that preserves small-balance retirement savings for only as long as they can be consolidated into a current-employer’s plan or into another IRA.”

Record High Number of 401(k) Millionaires, Average Account Balances at Fidelity

401k Specialist Editor-in-Chief Brian Anderson reports on Fidelity Investments’ newly-released Q3 2024 Retirement Analysis, including Fidelity’s disclosure that, “as of October 2024, more than 6,000 Fidelity plans adopted auto portability, with 2.2 million active participants in the Fidelity network.”

Industry-led effort to minimize 401(k) cashouts starts to pay off

Pensions & Investments’ Defined Contribution reporter Margarida Correia examines the 12/3 announcement by the Portability Services Network, writing that the “industry effort led by six record keepers to make workplace retirement savings plans more portable and reduce the problem of 401(k) cashouts is paying off.” Correia also cites RCH research figures and quotes PSN Chairman Robert L. Johnson and PSN President & CEO Spencer Williams.

No more lost 401(k)s when workers switch jobs: 5M signed up for auto portability in 2024

BenefitsPro’s Lynn Cavanaugh examines the recent announcement by the Portability Services Network that “[m]ore than 15,000 retirement plans, representing approximately 5 million participants, have signed up for auto portability.” Cavanaugh quotes PSN Chairman Robert L. Johnson, as well as PSN’s President & CEO Spencer Williams.