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.


Joint Committee on Taxation Releases Leakage Study

On 4/26/21, The Joint Committee on Taxation, a nonpartisan committee of the United States Congress, released the report "Estimating Leakage from Retirement Savings Accounts." Taking a novel approach, the report examines tax data to calculate a "leakage ratio" that represents the ratio of net distributions to net contributions for participants 50 or younger. The study clearly identified job-changing as the chief cause of leakage, finding that the leakage ratio is 26% in the "year of the event" but remaining high in years 2-5 that follow. The report further concludes that the use of "forced distributions and portability of plans likely affect leakage."


Auto portability is, and always will be, a bipartisan solution

Writing in an opinion piece in Employee Benefit News, RCH President & CEO Spencer Williams addresses the consistent bipartisan support that auto portability has enjoyed in DC. This support, writes Williams, transcends party affiliation, extending across multiple Presidential administrations as well as both legislative branches of the U.S. Congress, and falls squarely in-line with policy initiatives that advance the interests of minority and low-income workers. Williams provides readers with an impressive, years-long list of actions & endorsements that reflect auto portability's broad-based support, which culminated last year with the nationwide rollout of the program.


Auto Portability Featured in Senate Finance Subcommittee Hearing

In a Senate Finance subcommittee hearing held on 12/9/20 (Investigating Challenges to American Retirement Security) expert witness Michael P. Kreps offered testimony highlighting the problem of cashout leakage and pointing to auto portability as a near-term solution for "millions of plan participants early next year." Following Kreps testimony, strong bipartisan support for auto portability was voiced by Sen. Sherrod Brown (D-OH), Sen. James Lankford (R-OK) and Sen. Catherine Cortez-Masto (D-NV).


PRESS RELEASE - John Malone Partners with Bob Johnson to Help Minorities Increase Retirement Savings

Citing a “meeting of like minds,” John C. Malone, Chairman of Liberty Media Group, and Robert L. Johnson, Chairman of the RLJ Companies and the majority owner of Retirement Clearinghouse LLC (RCH), announced today that Mr. Malone has purchased a minority stake in RCH.


How to Handle the Explosion of Small-Balance IRAs

In his opinion piece in 401k Specialist Magazine, RCH's Tom Hawkins examines EBRI's 10/1/20 Fast Facts - Losing Ground Safely: Small IRAs’ Large Stake in Money - which provides new insight into the magnitude of a small-balance IRA “explosion” fueled by automatic rollovers, as well as the sub-optimal retirement outcomes they produce. EBRI's new information provides yet another data point in favor of 401(k) consolidation via auto portability and could serve to inform future regulatory guidance by expanding auto portability’s mandate to consolidate these previously “stranded” safe harbor IRAs back into our 401(k) system.


PRESS RELEASE - Alight Solutions to Lead Nationwide Launch of the Retirement Clearinghouse Auto Portability Program

In a press release, Retirement Clearinghouse (RCH) announces that Alight Solutions will lead the nationwide launch of the RCH Auto Portability program. Alight, a leading provider of next level human capital and business solutions, will offer RCH Auto Portability solution to its client base of 185 defined contribution plan sponsors serving nearly five million employees. The announcement identified three Alight clients who, among others, are already supportive of auto portability and included statements from RLJ Companies Founder & Chairman Robert L. Johnson, Alight Solutions Executive Vice President Alison Borland, and RCH President & CEO Spencer Williams.


Extend the Spirit of the CARES Act to Automatic Rollovers

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.


P&I: Preston Rutledge's legacy to include auto portability

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."

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