Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
In his 8/6/19 article, 401k Specialist Editor-in-Chief John Sullivan addresses the DOL's recent guidance for the RCH Auto Portability program, stating that "the auto revolution in retirement plans (auto-enrollment, escalation, deferral) adds another option with the release last week of the U.S. Department of Labor’s (DOL) final Prohibited Transaction Exemption (PTE) for auto portability." Sullivan goes on to quote RCH President & CEO Spencer Williams, who states that published comments from industry trade groups regarding auto portability were “overwhelmingly positive” while also pointing out the "legal protections for plan sponsors to help small-balance participants preserve their savings."
PLANSPONSOR's Lee Barney covers the DOL's final prohibited transaction exemption (PTE) for the RCH Auto Portability program, interviewing RCH President and CEO Spencer Williams. In the article, Williams characterizes the DOL's action as the final regulatory guidance required for plan sponsors and recordkeepers to pursue the program, indicating that he is very encouraged, having worked the issue for five years, adding: "we are very passionate about creating a new benefit for participants and solving the leakage issue.”
In an 8/1/19 article, the editorial staff of the Retirement Income Journal covers the US Department of Labor's issuance of a final prohibited transaction exemption (PTE) for the RCH Auto Portability program. The article cites the final PTE as a key milestone in a five-year effort to gain regulatory approval for auto portability, and credits RCH executives Spencer Williams and Tom Johnson for their ongoing efforts since 2014.
The Thomson Reuters Practical Law website (Westlaw) reports on the DOL's issuance of the finalized PTE 2019-02 for the RCH Auto Portability program. The article provides readers with some background on auto portability, focusing on the legal underpinnings established by both the PTE as well as the DOL's Advisory Opinion 2018-01A, before turning to the practical implications of auto portability in addressing the problem of retirement plan leakage.
In his 7/31/19 article, P&I Legal and Regulatory reporter Brian Croce covers the Department of Labor's issuance of their final prohibited transaction exemption (PTE) for RCH Auto Portability, stating that the DOL's action "gave Retirement Clearinghouse LLC the green light ..to expand its auto-portability program, which is expected to reduce plan leakage and missing participants." Croce quotes Robert L. Johnson, founder and chairman of The RLJ Companies, as well as RCH Founder, President and CEO Spencer Williams.
Employee Benefit News' Caroline Hroncich reports on the Department of Labor's issuance of a final prohibited transaction exemption (PTE) for the RCH Auto Portability program, which she characterizes as "a move which may decrease the likelihood employees cash out their retirement plans when they switch jobs." Hroncich quotes RCH Founder, President and CEO Spencer Williams, as well as Jan Jacobson, senior counsel for retirement policy at the American Benefits Council.
NAPA Net's Ted Godbout covers breaking news that the US Department of Labor has granted final approval to Retirement Clearinghouse (RCH) for a Prohibited Transaction Exemption (PTE) for the RCH Auto Portability program. As Godbout states, "the RCH Program seeks to help eliminate duplicative fees and reduce retirement savings leakage by providing individuals who are changing jobs with a way to transfer retirement assets from their prior employers’ plans to their new employers’ plans." Godbout also references the DOL's Advisory Opinion 2018-01A, issued in November 2018, and cites EBRI research indicating that system-wide adoption of auto portability for "smaller accounts alone would save $1.5 trillion."
Retirement Clearinghouse (RCH) welcomes the release of the U.S. Department of Labor’s (DOL) final Prohibited Transaction Exemption (PTE) for auto portability, issued July 31, 2019. In a press release, Robert L. Johnson, Founder and Chairman of The RLJ Companies and majority owner of Retirement Clearinghouse (RCH), along with RCH Founder, President and CEO Spencer Williams both voice their support for the DOL's guidance, which, along with their November 2018 Advisory Opinion, now completes the regulatory framework for auto portability.