EBRI's Research Establishes Auto Portability as a Leading Public Policy Initiative

Auto Portability - Public Policy

Learn more about retirement savings public policy positions related to Auto Portability.


Mar
02
2022

Long Overdue, Pension Auto Portability Is Coming

Writing in the Pension Research Council's (Wharton School, Univ. of Pennsylvania) RetireSecure Blog, Michael Kreps of the Groom Law Group offers his considered view on auto portability, which Kreps believes "is likely to have an enormous impact on the US retirement system" by reducing cashout leakage and consolidating retirement savings. In the piece, Kreps cites a variety of industry statistics and projections, concluding that auto portability "will undoubtedly preserve many small accounts, making retirement more secure for millions of people."

Feb
24
2022

Improving retirement readiness for underrepresented groups

Alight Solutions has released a new research report, entitled "Improving Retirement Readiness for Underrepresented Groups." The new paper identifies six key actions that plan sponsors can undertake to boost retirement savings for historically under-represented groups. In one of those actions, Alight advises employers that "implementing auto-portability can help reduce the number of automatic cash-outs that occur when people change employers" and that auto portability's impact is "most profound for marginalized groups."

Direct link to report (PDF format)

Feb
24
2022

What happened to auto-portability?

Writing in BenefitsPro, David Baumann recaps a 1/6/2022 report by the Aspen Institute that identified a compelling need for portability, yet "more than 40 years after a presidential commission recommended making retirement programs more portable, policymakers are still struggling with the issue." Baumann notes that the Aspen Institute's paper cited a number of key factors making the case for auto portability, including: 1) the propensity of American workers to change jobs, 2) to cash out following a job change, and 3) an EBRI survey finding that "85% of retirement savers would find automatic transfers between programs valuable." Baumann also noted that "[a]n Aspen survey of retirement experts found that 57% supported a mandate" for auto portability, while 48% of the same experts believed that auto portability was feasible without a mandate.

Feb
14
2022

Amidst the Great Resignation, retirement-savings portability is more vital than ever

Writing in Employee Benefit News, RCH President and CEO Spencer Williams breaks down the phenomenon known as The Great Resignation. Williams makes a compelling case that -- for defined contribution plans -- seamless plan-to-plan portability, including auto portability, are absolutely vital to preserving affected participants' retirement savings, and in ensuring that their retirement savings balances are moved forward when they re-enter the workforce.

Feb
11
2022

How Auto Portability Helps Women, Minorities and Lower-Income Workers

Writing in 401k Specialist, RCH’s Tom Hawkins opines on the release of the ERISA Advisory Council’s latest report – “Gaps in Retirement Savings Based on Race, Ethnicity and Gender.” In that report, Cindy Hounsell, President of WISER, observed that auto portability's benefits would primarily accrue to those with lower incomes, to minorities, and to women. The EAC's final report also included a recommendation to “study the feasibility of a national portability system” – more commonly referred to as auto portability. Hawkins found the EAC’s recommendation “remarkable given the fact that it emanated from a diverse group of 14 industry experts holding a wide range of opinions on practically any topic.”

Feb
09
2022

EAC Backs Changes to Narrow Race, Gender Savings Gaps

NAPA Net's Ted Godbout covers the release of the ERISA Advisory Council's report, entitled "Gaps in Retirement Savings Based on Race, Ethnicity and Gender.” The report makes five key recommendations, including the need to "address fragmentation" within the retirement system. It is within this recommendation that Godbout notes that the report advises taking up the investigation of auto portability, framing it as "studying the feasibility of a national portability system to encourage and facilitate account consolidation and retirement savings preservation for individuals with small account balances in several plans."

Feb
08
2022

Lower-Income Workers Benefit the Most From Auto-Portability

PLANSPONSOR's DJ Shaw reports on the growing body of research indicating that auto portability can help close the wealth gap for lower-income workers and minorities. Citing research from Alight Solutions, Shaw walks readers through system-wide leakage statistics and provides an illustration of the high cost of cashing out small balances. Shaw turns to RCH President & CEO Spencer Williams, who provides a primer on RCH's Auto Portability service, followed by RCH EVP of Public Policy, Renée Wilder Guerin, who refers to the minority wealth gap, stating “in today’s world of growing interest in diversity, equity and inclusion, auto-portability is a solution that is measurable—you can measure the impact of someone keeping their retirement account going.”

Also featured in PlanAdviser

Feb
03
2022

The ‘Fix’ for Missing 401k Participants and Forgotten Accounts

Auto portability has received a lot of well-deserved attention for its ability to reduce cashout leakage by automatically consolidating small-balance retirement savings, but its effect on preserving participants’ retirement savings is only half of its compelling story. In an opinion piece for 401k Specialist, RCH's Tom Hawkins explores how auto portability can also act as the 'fix' for the related problems of missing participants, uncashed distribution checks and small, forgotten 401(k) accounts.

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EBRI's Research Establishes Auto Portability as a Leading Public Policy Initiative