- Auto Portability Overview
- Auto Portability FAQs
- Recent Developments
- Foundational Research
- Public Policy
- Media Coverage
- Press Releases
- Regulatory Information
- Auto Portability Plan Calculator
- National Cash Out Clock
- Downloads & Video
- Get Updates on Auto Portability
Auto Portability - Public Policy
Learn more about retirement savings public policy positions related to 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.”
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.
PLANSPONSOR reporter Noah Zuss covers EBRI's 1/20/22 Issue Brief #550, which examined the impact of four recent policy proposals upon the nation's retirement deficits, including their impact on racial and ethnic demographic segments. While all proposals reduced retirement savings shortfalls, the combination of ACPAs and an enhanced saver's credit produced the best results. Importantly, when auto portability was added to both the ACPA and saver's credit, overall retirement savings shortfalls further decreased by 10.8% to 14.3%, depending on race/ethnicity.
In his weekly 401k Market Minute video segment, 401k Specialist Editor-in-Chief John Sullivan leads off his news round-up with the "big boost" obtained by auto portability following its recent endorsements by the nation's two premier civil rights organizations, the NAACP and the National Urban League.
NAPA Net reporter Ted Godbout covers the release of EBRI Issue Brief #550, which examined the effects of potential public policy initiatives, including an Automatic Contribution/Plan Arrangement (ACPA), an enhanced saver's credit, a "skinny" 401(k), and a student loan debt employer match. Importantly, the EBRI study also noted the "stacking" effect of auto portability onto the ACPA and Saver's Credit combo, where it reduced retirement deficits by an additional 11% to 14%, depending on race.
EBRI Issue Brief #550, released 1/20/22, examines the effects of various public policy initiatives, including an Automatic Contribution/Plan Arrangement (ACPA), an enhanced saver's credit, a "skinny" 401(k), and a student loan debt employer match. Importantly, the EBRI study noted the massive, incremental effects of auto portability, when added to the ACPA and Saver's Credit, where it reduced overall retirement deficits by 11% to 14%, depending on race.
401k Specialist Editor-in-Chief John Sullivan examines the latest Issue Brief from the Employee Benefit Research Institute (EBRI), which assesses the impact of recently-proposed changes to the retirement system and how they could shrink retirement deficits. Sullivan notes that "combining automatic contribution provisions with an enhanced Saver’s Credit in 401ks and DC plans would reduce retirement savings shortfalls by 17% to 26%, depending on race" adding that "the addition of auto portability of retirement accounts resulted in a further double-digit reduction in savings shortfall across all races examined."
Robert L. Johnson, Founder and Chairman of The RLJ Companies and majority owner of Retirement Clearinghouse (RCH), has secured endorsements for auto portability from two premier civil rights organizations – the National Urban League, and the National Association for the Advancement of Colored People (NAACP) – both with over a century of experience advocating for solutions that address the inequities and economic challenges experienced by Black Americans and by other communities of color. Writing in 401k Specialist, RCH's Renée Wilder Guerin, Executive Vice President, Public Policy, summarizes these major developments.