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Retirement Clearinghouse in the News
Find news articles referencing RCH and our services, including RCH Auto Portability
The Thomson Reuters Practical Law website (Westlaw) reports on the DOL's issuance of the finalized PTE 2019-02 for the RCH Auto Portability program. The article provides readers with some background on auto portability, focusing on the legal underpinnings established by both the PTE as well as the DOL's Advisory Opinion 2018-01A, before turning to the practical implications of auto portability in addressing the problem of retirement plan leakage.
In his 7/31/19 article, P&I Legal and Regulatory reporter Brian Croce covers the Department of Labor's issuance of their final prohibited transaction exemption (PTE) for RCH Auto Portability, stating that the DOL's action "gave Retirement Clearinghouse LLC the green light ..to expand its auto-portability program, which is expected to reduce plan leakage and missing participants." Croce quotes Robert L. Johnson, founder and chairman of The RLJ Companies, as well as RCH Founder, President and CEO Spencer Williams.
Employee Benefit News' Caroline Hroncich reports on the Department of Labor's issuance of a final prohibited transaction exemption (PTE) for the RCH Auto Portability program, which she characterizes as "a move which may decrease the likelihood employees cash out their retirement plans when they switch jobs." Hroncich quotes RCH Founder, President and CEO Spencer Williams, as well as Jan Jacobson, senior counsel for retirement policy at the American Benefits Council.
NAPA Net's Ted Godbout covers breaking news that the US Department of Labor has granted final approval to Retirement Clearinghouse (RCH) for a Prohibited Transaction Exemption (PTE) for the RCH Auto Portability program. As Godbout states, "the RCH Program seeks to help eliminate duplicative fees and reduce retirement savings leakage by providing individuals who are changing jobs with a way to transfer retirement assets from their prior employers’ plans to their new employers’ plans." Godbout also references the DOL's Advisory Opinion 2018-01A, issued in November 2018, and cites EBRI research indicating that system-wide adoption of auto portability for "smaller accounts alone would save $1.5 trillion."
In his five-part series in 401k Specialist, RCH's Tom Hawkins sheds light on the problem of cashout leakage, a silent crisis that unnecessarily robs millions of Americans of their retirement security. In his second article in the series, Hawkins examines the demographics of 401(k) cashout leakage, identifying those segments of the population most impacted by the problem, as well as those who stand to benefit the most from a solution.
PLANSPONSOR's Amanda Umpierrez reports on the major findings from the 2019 Aegon Retirement Readiness Survey, which provided a comparative analysis of retirement readiness in countries around the world. Summarizing the key takeaways for employers, Umpierrez turns to Transamerica's Catherine Collison, who suggests "that the U.S. government can require employers to offer auto-enrollment in retirement plans......and can continue efforts to implement retirement plan auto-portability."
In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams identifies a key, missing element in pending retirement legislation: provisions to plug cash-out leakage. Citing both the SECURE Act of 2019 and the Automatic Retirement Plan Act of 2017 (ARPA), Williams applauds their commendable goals to expand coverage, but takes them to task for failing to incorporate provisions that plug leakage. To make his case, Williams cites two recent EBRI studies, both finding that auto portability – when combined with legislative proposals that expand access – vastly improves their public policy benefits by stemming leakage and by dramatically reducing the nation’s retirement savings shortfall.
401k Specialist Editor-In-Chief John Sullivan reports on EBRI's 7/11/19 analysis of DC legislative proposals, including mandatory coverage (auto-IRAs), immediate annuities, open MEPs and changes to required minimum distributions -- all of which deliver significant retirement public policy benefits, as measured by their simulated reduction in the retirement savings shortfall (RSS). Importantly, Sullivan singles out auto portability as providing the most-impressive benefits, noting: "if a full auto portability scenario is assumed on top of all of the aforementioned changes to the retirement system, the average retirement deficit is simulated to decrease by 27.1 percent."