News

Auto Portability’s Big Move: Major Recordkeepers Form Consortium with RCH

The 401k Specialist Magazine's Managing Editor Brian Anderson writes that "401k auto portability took a huge step forward today" with the news that "Fidelity Investments, Vanguard, Alight Solutions and Retirement Clearinghouse (RCH) have established an industry-first consortium to accelerate nationwide adoption" of auto portability. Anderson notes that the group aims to "govern the network as an industry utility designed with the goal of operating at the lowest cost to workers participating in auto portability."

Retirement Giants Band Together to Help Job-Switchers Transfer 401(k)s

Bloomberg reporter Suzanne Woolley reports on the "rare collaborative effort" undertaken by Fidelity, Vanguard and Alight to form a retirement industry-led consortium that, along with Retirement Clearinghouse (RCH), aims to accelerate the adoption of auto portability. Woolley quotes Alight Solutions' Alison Borland, Fidelity's Kevin Barry and The Vanguard Group's John James.

Also featured in Bloomberg Law, Employee Benefit News, InvestmentNews and Financial-Planning.com

401(k) Companies Make It Easier for Retirement Savings to Follow You to Your Next Job

Wall Street Journal reporter Anne Tergesen covers breaking news that a retirement industry-led consortium, comprised of Fidelity, Vanguard and Alight, have joined forces with Retirement Clearinghouse (RCH) to accelerate the adoption of auto portability. The three recordkeepers, writes Tergesen, "collectively represent about 40% of the 401(k) industry’s participants" and will begin offering the service to "48,000 401(k)-type plans that Fidelity, Alight and Vanguard administer" via Portability Services Network, LLC. Tergesen's piece quotes Fidelity's head of workplace-benefits Kevin Barry, the RLJ Companies' Chairman Robert L. Johnson and RCH president & CEO Spencer Williams.

Fidelity, Vanguard, Alight Form Portability Pact

Ignites' Joe Morris covers the day's announcement that Fidelity, Vanguard and Alight -- teaming with Retirement Clearinghouse (RCH) -- are forming an industry consortium to promote the accelerated adoption of auto portability.

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Fidelity, Vanguard and Others Team Up to Fight 401(k) Cash-Outs

ThinkAdvisor's John Manganaro reports on the news that three of the nation's largest 401(k) recordkeepers -- Fidelity, Alight and Vanguard -- are teaming up with Retirement Clearinghouse LLC to form an industry consortium that will "accelerate the nationwide adoption of automatic portability for workplace retirement accounts such as 401(k)s." Manganaro goes on to quote RCH Chairman Robert L. Johnson, who states that the collaboration is a “truly historic moment” for the retirement planning industry.

Retirement Clearinghouse teams up with 401(k) recordkeepers for under-served retirement savers

Retirement Clearinghouse (RCH) Chairman Robert L. Johnson appears on CNBC's Squawk Box to disclose breaking news that RCH is collaborating with 3 of the nation's largest 401(k) recordkeepers to create a consortium, Portability Services Network, LLC, to accelerate the nationwide adoption of auto portability. Auto portability, says Johnson, will help address America’s minority wealth gap by assisting under-served and under-saved workers improve their retirement outcomes, while the consortium will ensure that the new feature is not only rapidly adopted, but will be delivered in the most cost-effective manner possible.

Record keepers launch auto-portability consortium to reduce plan leakage

Pensions & Investments DC reporter Brian Croce reports breaking news that three of the nation's largest record keepers -- Fidelity, Alight and Vanguard -- are teaming up with Retirement Clearinghouse LLC to launch an industry-led auto-portability consortium aimed at reducing plan leakage and improving retirement outcomes. Croce's piece quotes RCH president & CEO Spencer Williams, while noting that "record keepers that own or participate in the consortium will not receive any compensation for facilitating auto portability transactions from participants."

Why DEI and ‘Traditional’ Automatic Rollovers Don’t Mix

When it comes to 401(k) diversity, equity, and inclusion (DEI) initiatives, RCH’s Tom Hawkins observes broad support for expanded access and automatic features, since they “are supportive of increasing participation and asset accumulation across all demographics.” No one, writes Hawkins, points to ‘traditional’ automatic rollovers as facilitating DEI goals, as they “penalize the very demographic segments that DEI initiatives strive to uplift.” Hawkins urges plan sponsors to re-tool ‘traditional’ automatic rollover programs to include education and assistance and to incorporate auto portability – delivering more equitable retirement outcomes for under-saved and under-served participants.