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.


Jan
18
2024

DOL Proposes Regs to Help Job Changers Move 401(k)s Automatically

ThinkAdvisor's John Manganaro reports on breaking news that, on Thursday 1/18/24, "the Employee Benefits Security Administration within the U.S. Department of Labor released proposed regulations....meant to expand the use of automatic retirement account portability tools." Manganaro further reports that the new framework identifies "11 requirements under the statutory exemption that must be satisfied for the automatic portability transaction to be covered by the exemption."

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Jan
18
2024

Department of Labor Releases Proposed regulation on Retirement Plans and Automatic Portability Transactions When Employees Change Jobs

On January 18th, 2024 the Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) released proposed regulations on automatic portability transactions under the SECURE 2.0 Act of 2022. In the press release accompanying the proposed rules, EBSA Assistant Secretary Lisa Gomez remarked: “With the widespread adoption of these accounts, there is a particular need for automatic portability solutions that help ensure participants remain connected to their retirement savings when they change jobs." The Notice of Proposed Rulemaking was posted on the department’s website and will be published in the Federal Register with a 60-day public comment period and instructions on how to submit comments.

Jan
10
2024

New SECURE 2.0 regulations now in effect in 2024: Is your 401(k) in compliance?

Writing in BenefitsPRO, Jennifer Tanck, Executive Vice President of Pensionmark, informs readers about the key SECURE 2.0 provisions that will affect plan sponsors in 2024. Addressing auto portability, Tanck writes that "[t]he SECURE 2.0 Act now codifies automatic portability" and "permanently approves the negative consent of rollovers of small balances to a terminated employee’s new employer through the Retirement Clearinghouse. The threshold for these rollover amounts has been increased from a maximum of $5,000 to $7,000 for 2024."

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Dec
27
2023

Small-Balance Retirement Account Holders to See Significant Changes in 2024

PLANSPONSOR's Remy Samuels covers developments surrounding small-balance accounts, including the 12/29/23 increase of the mandatory distribution threshold from $5,000 to $7,000, the recent announcement by the Portability Services Network (PSN) of live operations, and the release by Retirement Clearinghouse (RCH) of an updated version of its Auto Portability Simulation (APS). Samuels briefs her readers on all of these developments, and offers a summary of key results from RCH's new APS model.

Dec
08
2023

DOL Drops Off Proposed Auto-Portability Exemption at OMB

NAPA Net's Ted Godbout, covering DC's retirement regulatory agency activity, reports forward progress towards the public release of guidance for auto portability, as called for in SECURE 2.0 Act provisions. On December 5th, Godbout reports that the DOL submitted the proposed guidance to the White House Office of Management and Budget for their review. Godbout further observes that "the proposal will now undergo a review at OMB before being released for a public comment period, which shows a target release date of December 2023."

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Nov
27
2023

What’s on Tap for the Next Retirement Plan Policy Bill?

Andrew Remo, the American Retirement Association's (ARA) Director of Federal & State Legislative Affairs, summarizes the ARA's positions on key legislative matters following SECURE 2.0, and contemplates future, "new bipartisan proposals for consideration in the next round of retirement plan policymaking." While Remo addresses multiple legislative initiatives, he identifies Roth IRA rollovers as ARA's top priority. Because workers are currently prohibited from rolling Roth IRA savings into a workplace-based retirement savings plan, Remo believes that legislation removing this limitation could lead to more-effective operation of auto portability, which would facilitate automatic consolidation of these Roth IRA balances into a current-employer's workplace plan, while minimizing duplicative fees.

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Nov
15
2023

401(k) Real Talk Episode 85: November 15, 2023

Fred Barstein, founder and CEO of The Retirement Adviser University, anchors his ongoing Wealth Management RPA Edge / 401(k) Real Talk video series, and discusses the 11/7/23 launch of auto portability services via the Portability Services Network (PSN). In his comments, Barstein notes the greater, longer-term potential of the PSN network to facilitate portability and to promote financial wellness, stating: “the initial launch, facilitated by the Retirement Clearinghouse is a great beginning – not just for the Portability Services Network, but for the entire DC industry.” Barstein’s commentary on PSN begins at the 3:00 mark.

Nov
08
2023

LTPT and Auto-Portability Regs Coming Soon, Officials Reiterate

Writing in ASPPA Net, John Iekel covers the Nov. 6 session of the Society for SPARK Forum, where officials from the IRS and the DOL weighed in on their near-term regulatory agenda. In a panel that included DOL Principal Deputy Assistant Secretary Ali Khawar, the topic of auto portability was addressed. Iekel quotes Khawar as stating that auto portability is “an important part of the puzzle” and that "and that the DOL will be issuing guidance that will provide more clarity on what the statutory text says." Iekel adds that "Khawar’s comments were similar to those articulated Oct. 24 at the ASPPA Annual Conference...by Assistant Secretary of Labor Lisa Gomez."

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