Auto Portability - Public Policy
Learn more about retirement savings public policy positions related to Auto Portability.
Michael Barry Gives DOL an 'A' on Auto Portability
In his ongoing "Barry's Pickings" column for PLANSPONSOR, Michael Barry, president of O3 Plan Advisory Services LLC, gives the U.S. Department of Labor an 'A' for its November 2018 issuance of a proposed Prohibited Transaction Exemption (PTE) and an Advisory Opinion on Auto Portability. Barry adds: "as a long-time advocate of the establishment of a clearinghouse, I view this as very good news."
WISER Publication Features Auto Portability
In an article carried in their WISERWoman Fall 2018 newsletter, the Women's Institute for a Secure Retirement (WISER) spreads the "good news" that the U.S. Department of Labor has issued an Advisory Opinion on auto portability, clearing the path for the automatic transfer of small 401(k) balances of $5,000 or less. The WISER article also notes that women are hard-hit by retirement savings cashout leakage, with 2.4 million women cashing out $28 billion per year from 401(k) plans.
American Benefits Council Commends DOL's Approval of Auto Portability
In response to the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration’s (EBSA) recent approval of the RCH Auto Portability program, the American Benefits Council commended the agency for its efforts to address the problems of leakage and missing participants. It also suggested that the DOL extend RCH's portability exemption to pre-existing safe harbor IRAs. In a December 20th letter to the DOL, the Council voiced its support, noting that the proposed exemption “appears to include sufficient safeguards for participants, including an extensive set of notice requirements.”
Paris Dennard Identifies Auto Portability as Policy Beneficial to Minorities
In his 12/17/18 opinion piece in The Daily Caller, Paris Dennard examines some of the Trump administration's economic policies toward black Americans, identifying the Labor Department's auto portability rule change as "allowing Americans, especially minorities, the ability to preserve their retirement savings when they change jobs."
BET Founder Bob Johnson Applauds Administration For 401(k) Auto Portability Program
RealClear Politics' Ian Schwartz covers the 12/12/18 White House event marking the establishment of the White House Opportunity and Revitalization Council, and focuses specifically on remarks made by the RLJ Companies founder and Retirement Clearinghouse majority owner Robert L. Johnson. In his remarks, Mr. Johnson thanks the administration for the Department of Labor's recent actions on Auto Portability, noting that the auto portability program could result in "close to $800 billion" in incremental retirement savings for minority Americans.
WhiteHouse.Gov: EO on White House Opportunity and Revitalization Council Features Auto Portability
On 12/12/18, President Donald J.
Trump signed an executive order establishing the White House Opportunity and
Revitalization Council, intended to facilitate long-term equity investments in
low-income communities designated as "qualified opportunity
zones." Among the distinguished guests at the event was entrepreneur
Robert L. Johnson, founder of the RLJ Companies and majority owner of
Retirement Clearinghouse. Mr. Johnson took the opportunity to
congratulate the administration and Sen. Tim Scott (R-SC) for their role in the
Department of Labor's recent Advisory Opinion on auto portability, noting that
auto portability will preserve $800 billion in minorities' retirement savings.
Video available on YouTube's White House channel here (queued to start at the President's introduction of Mr. Johnson)
MarketWatch: Combining small 401(k) accounts helps preserve retirement saving
In her 12/4/18 article in MarketWatch, noted economist and retirement researcher Alicia H. Munnell applauds the Department of Labor's favorable actions toward the RCH auto portability program. Munnell highlights the dilemma facing millions of Americans each year, who leave their jobs and cash out their retirement savings, and cites the ongoing efforts by RCH's Spencer Williams and Tom Johnson in crafting the solution, auto portability. Munnell aptly characterizes auto portability's recent progress as being "so lovely to see a win for the 401(k) system."
Also featured in Morningstar News (link)
The Hill: Labor Department rightly trying to plug pension portability leaks
In his 11/19/18 opinion piece in The Hill, former U.S Treasury official and senior fellow in economic studies at The Brookings Institution Mark Iwry writes about his personal, 22-years long advocacy for 401(k) portability, dating back to the Clinton administration. Not much had changed in that time, says Iwry, until last week's guidance by the Department of Labor (DOL) on auto portability, led by the efforts of RCH executives Spencer Williams and Tom Johnson. With the way cleared by the DOL, Iwry notes that auto portability's success will now depend on the "willingness of recordkeepers...to cooperate so participants can enjoy expanded portability."