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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including RCH Auto Portability
Writing for 401kTV, Steff Chalk, Executive Director of The Retirement Advisor University, describes the growing employer acceptance of wellness benefits, as they become more readily measurable. Chalk extensively quotes an article previously authored by RCH's Spencer Williams in Employee Benefit News, where Williams itemizes the many real, quantifiable and positive impacts of auto portability on participants' financial wellness.
Writing in Employee Benefits News, RCH President & CEO Spencer Williams examines the disruptive effects of the COVID-19 pandemic on America's retirement savers, and makes a persuasive case for the systemic, institutional adoption of auto portability as a means to help rebuild and to preserve retirement savings over the long-term. In the near-term, Williams observes that reduced participant mobility make this an opportune time for sponsors to update participant addresses.
Writing in 401k Specialist, RCH's Tom Hawkins addresses the need to protect newly-terminated, vulnerable participants during the COVID-19 crisis. Hawkins points out that these participants are particularly vulnerable to financial emergencies, or in many cases, simply to poor decision-making. Hawkins urges sponsors to take additional steps to listen, to educate and to protect these participants -- not only during the crisis, but beyond.
In their latest "Inside Angle" column featured in the April-May 2020 PLANSPONSOR Magazine edition, Groom Law Group's Steve Saxon and George Sepsakos advise fiduciaries on the "pluses of portability" -- specifically addressing the improvements auto portability confers upon the 15 year-old automatic rollover (ARO) feature. Auto portability, writes the authors, "is consistent with the DOL’s broader view that plan fiduciaries have an obligation to locate missing participants and to pay benefits." To this end, they urge sponsors & fiduciaries -- when reviewing their ARO programs -- to consider incorporating auto portability in order to best meet these core fiduciary requirements.
In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams identifies plan-to-plan portability as a vital feature to prevent cash-out leakage. Similar to the progress that's been made over the past decade in reducing plan fees, Williams makes the case that the inevitable "institutionalization" of portability will dramatically reduce cash-out leakage and maximize participants' retained savings. Williams advocates for the adoption of a dual portability model, comprised of auto portability for small balances and a consent-based, concierge service for participants with larger balances.
Writing in 401kSpecialist, Danielle Andrus examines the issue of securing retirement plans, and turns to RCH expertise on the matter. Andrus quotes RCH EVP Neal Ringquist, who states “the more accounts that are out there in the system, the more accounts an individual has, the more opportunity there is for online access to those accounts." By encouraging new hires to consolidate their accounts, it helps protect participants from "losing data or assets to cybercrime." From an institutional perspective, Ringquist also observes that "the level of due diligence, particularly around information security, has significantly increased in the last five years.”
In light of the COVID-19 crisis, RCH's Tom Hawkins examines another burden borne by millions of participants, when they’re furloughed or laid off and become subject to ‘traditional’ automatic rollover IRAs – where they’ll likely face high levels of cashouts, predatory fees and barriers to exit. Now, more than ever, it’s important for sponsors to act and to redress this burden. For sponsors utilizing traditional automatic rollover IRAs, Hawkins urges them to demonstrate their caring through three actions that will help address the problem and will deliver significant societal benefit.
Covering breaking news, P&I's Washington, DC reporter Brian Croce informs readers about the pending departure of Preston Rutledge, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). With no official announcement by the DOL, Croce turns to Michael Kreps, a principal at Groom Law Group, for comment. Kreps states in an email that "Preston is a dedicated public servant, and his legacy at the department includes important work on pooled retirement plans and auto portability" with Croce adding that auto portability "has a goal of significantly reducing plan leakage and missing participants."