Retirement Clearinghouse in the News

Find news articles referencing RCH and our services, including RCH Auto Portability


Jun
07
2022

Vanguard: Retirement Plans Should Evolve for the Modern Worker

On June 7th, Vanguard released the newest edition of How America Saves, the firm’s seminal report on 401(k) plan design and retirement savings habits. Through its annual, comprehensive analysis of nearly five million 401(k) accounts recordkept at Vanguard, the report reveals additional plan design opportunities employers can address to further improve workers’ retirement readiness. In the release, under key findings, Vanguard notes that "cash outs disproportionately impact younger, low-balance participants" and adds that "[a]uto portability services and revisions to minimum balance rules can help decrease cash out rates."

Jun
02
2022

Leakproof Your Plan

Writing in the April-May edition of PLANSPONSOR magazine, Karen Wittwer and Noah Zuss collaborate to examine steps that plan sponsors can take to "leakproof" their retirement plans and to safeguard their participants' retirement savings from unnecessary leakage. Wittwer and Zuss turn to several industry sources, including RCH's EVP & Chief Revenue Officer Neal Ringquist and Tom Hawkins, SVP, Marketing & Research. In his remarks, Ringquist emphasizes the importance of addressing cashout leakage as the top priority, and striking a balance when it comes to restricting in-service withdrawals, while Hawkins cites the importance of providing education and assistance to new hires as well as to newly-separated participants.

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May
27
2022

5 New Automatic Rollover Criteria for 401k Plan Sponsors

In his latest piece in 401k Specialist, RCH's Tom Hawkins writes that the criteria for selecting an automatic rollover IRA provider have fundamentally changed. In the past, most 401(k) plan sponsors simply accepted the solution offered through their recordkeeper or TPA. While others performed due diligence, they applied a limited set of criteria including basic fees, investment options and accountholder service. Few considered the grim realities facing terminated participants forced out into safe harbor IRAs, including excessive cashouts, forgotten accounts, hidden fees, and barriers to exit. Now, writes Hawkins, it's incumbent upon plan sponsors to fundamentally “re-think” these programs, incorporating 5 new criteria to ensure that their automatic rollover IRA programs are fiduciary-friendly, while dramatically improving participants’ retirement outcomes.

May
26
2022

Press the magic (benefits) button

Writing in BenefitsPRO, Omaha-based benefits consultant Marty Traynor examines the status of technology in today's HR benefits world, and identifies serious shortcomings, writing that "neither employers nor employees think the process supporting employee benefits is as easy to work with as it should be." Building a list of 8 technology-based processes that could bridge the gap, Traynor includes auto portability in the list, envisioning the day "[w]hen an employee changes jobs or retires—auto portability processes...support continuing portable coverages."

May
20
2022

401k Portability in Four Movements: Case Study

Writing in 401k Specialist, RCH's Tom Hawkins examines the experience of a very large (250,000+ participants) 401(k) plan sponsor that has been highly successful in delivering improved participant outcomes by incrementally adopting a full program of retirement savings portability. Looking at four distinct five-year periods that coincided with increasing levels of portability and improved participant outcomes, Hawkins writes that "there’s no finer example of those [improved] outcomes than the multi-year, real-world experience of this plan sponsor, where thousands of participants increased their prospects for a timely and comfortable retirement."

May
17
2022

How Technology Is Transforming Retirement Preparation

Entrepreneur's April Miller examines how technology is transforming retirement, and notes how auto portability can serve to reduce participant cashouts. Miller writes that "[p]eople are increasingly advocating for auto-portability features built into employers’ retirement plans. In short, they would automatically transfer savings to new, active savings accounts in cases where the funds are subject to mandatory distributions."

May
17
2022

401(k) Auto Portability Can Improve Outcomes

Writing in 401kTV.com, Managing Editor Steff Chalk examines the dual impact that auto portability has on improving participant outcomes, while reducing fiduciary risk for plan sponsors. Chalk notes that auto portability helps address the problem of automatic cash-outs, which can create large volumes of uncashed checks -- resulting in poor outcomes and heightened fiduciary risks. "401(k) auto portability comes to the aid of plan sponsors" writes Chalk, adding: "401(k) auto portability has the potential to help mitigate sponsors’ fiduciary risk and reunite more participants with their hard-earned savings."

May
09
2022

How to Address the Achilles’ Heel of State Auto-IRA Programs

RCH's Tom Hawkins, writing in 401k Specialist, offers his view that state-sponsored auto-IRA programs, despite their potential size and strength, suffer from an obvious weakness, or "Achilles’ heel": a lack of retirement savings portability. Hawkins writes: "Without addressing their portability problem, auto-IRA programs could expand, but may never reach their full potential, housing large numbers of churning, small-balance accounts. However, with adequate support for portability both into and out of these programs, they could dramatically increase the odds that they deliver on their promise of building incremental retirement wealth for millions of Americans."

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