News

5 Misconceptions About Automatic Rollovers

Most agree -- automatic rollover programs can help retirement plan sponsors deal with many of the problems associated with small-balance accounts. Still, there are important misconceptions that persist about automatic rollovers. In his latest article appearing in 401k Specialist, RCH's Tom Hawkins introduces plan sponsors to a video addressing five of the most important misconceptions, and offers constructive suggestions on how sponsors can address them.

People Moves: Retirement Clearinghouse Adds Executive VP of Public Policy

PLANSPONSOR's Amanda Umpierrez reports on the retirement industry's most significant people moves, including Retirement Clearinghouse (RCH), where the firm appointed Renée Wilder Guerin as EVP of Public Policy, following the retirement of Tom Johnson.

Also featured in PlanAdviser

Auto Portability Gaining Acceptance

Writing in 401kTV, Managing Editor Steff Chalk observes that "auto portability appears to be gaining some ground as a solution for retirement plans" and can "impact cash-out leakage, missing participants, and forgotten 401(k) accounts" -- adding that nearly 9 of 10 participants value auto portability. "The case for auto portability" says Chalk, "is compelling, and getting stronger" and he further notes that "including auto portability in public policy could help to improve the results" of pending SECURE 2.0 legislation.

Auto-Portability Versus Authorized Portability—What’s the Difference?

Writing in 401k Specialist, RCH’s Tom Hawkins examines the positive interplay between auto portability and its nearly-automatic cousin – which he terms “authorized” portability. Authorized portability, writes Hawkins, occurs when a safe harbor IRA account not originating from within the auto portability network is matched to an active account in a plan that’s already adopted auto portability. While the accountholder must provide their consent to consolidate the balance, a frictionless automatic roll-in results, producing a win-win-win for participants, for plan sponsors and for adopting recordkeepers.

Pressure Mounts to Reunite Workers With Old Retirement Accounts

Bloomberg Law reporter Austin Ramsey addresses recent pressure on the federal government to reconnect retirement plan participants with their benefits, including the possible establishment of a retirement savings lost & found. For clarity, Ramsey turns to two experts -- Alicia Munnell, director of the Center for Retirement Research at Boston College, and RCH President & CEO Spencer Williams. Munnell's views underscore the need for consolidation and cites RCH's program of auto portability. Williams then provides Ramsey with an update on RCH's auto portability program, stating that any lost & found "must involve the private sector."

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Baby Boomers Can Grow Their Retirement Savings Quickly in 10 Simple Ways

Writing in MSN Money, Journalist Cameron Huddleston speaks with industry experts to identify tips for how Baby Boomers can catch up on retirement savings, and turns to RCH Executive Vice President Neal Ringquist for advice. Ringquist suggests that Boomers leverage their retirement savings accounts not only to accumulate savings for retirement, but to effectively manage tax burdens as well.

New Data Proves Effectiveness of 401k Auto-Portability

Writing in 401k Specialist, RCH’s Tom Hawkins examines new data collected from a large plan sponsor who’s implemented auto portability’s key technology components, but requires affirmative consent from participants in order to consolidate their balances. The data reveals resounding success in the location of active plan accounts, in obtaining participant consent and in executing automated roll-ins -- all of which augur well for the future of auto portability and for consolidation of larger balances.

DC industry must cooperate to resolve forgotten-accounts problem

Writing in InvestmentNews, contributor Fred Barstein addresses the issue of forgotten accounts, and turns to RCH President & CEO Spencer Williams for his views. Barstein writes "[w]hat is needed is a network of DC record keepers that share account information" and notes that Williams and RCH have been working on developing that "for more than a decade." Barstein quotes Williams, who states "no one argues against portability" while adding that "the network is the endgame" and requires "critical mass [to be successful]."