- 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 - Recent Developments
Find the most-recent auto portability media coverage and developments.
The case for auto portability, the new 401(k) plan default feature that automatically transfers small-balance retirement savings when participants change jobs, has always been strong. Now, with the April 22nd release of EBRI’s 31st Annual Retirement Confidence Survey (RCS), the case has grown even stronger. with nearly 9 in 10 plan participants expressing their preference for the auto portability feature.
In part 2 of their 2-part interview, RCH’s Spencer Williams continues to discuss auto portability with Lisa Massena, Founder of Massena Associates. In part 2, Williams turns to the importance of Alight Solutions (the first large recordkeeper who has adopted auto portability), touches on a range of views on auto portability from within the DC Beltway, and offers his insight on broader issues, including the overall level of retirement savings coverage.
In part 1 of their 2-part interview, RCH’s Founder, President & CEO Spencer Williams takes on the topic of auto portability with Lisa Massena, Founder of Massena Associates and publisher of the Retirement Security Matters newsletter. In part 1, their conversation highlights the fundamental dynamics driving the need for auto portability and offers readers a primer on how auto portability works.
Following on to the 2013 study by Boston Research Group (now Boston Research Technologies), a new study released by Retirement Clearinghouse (RCH) revisits a mega plan sponsor’s ongoing experience with a program of 401(k) retirement savings portability, and finds that not only have the benefits of the original program persisted, they’ve grown, with plan participants continuing to realize significant, measurable benefits.
In their survey Hot Topics in Retirement and Financial Wellbeing 2021, Alight Solutions finds that "the majority of employers are interested in a clearinghouse service that will automatically roll balances from one employer’s DC plan to another employer’s plan when individuals change jobs."
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).
The Editorial Staff of the Retirement Income Journal reports on the recent announcement that John C. Malone, chairman of Liberty Media Group, has taken a minority ownership stake in RCH, which is majority-owned by Robert L. Johnson, chairman of The RLJ Companies. The authors state that Malone made the investment after becoming "convinced...of the importance of reducing leakage from qualified plans." The article also notes that the investment comes on the heels of RCH's previous announcement that Alight Solutions will lead the nationwide launch of the RCH Auto Portability Program, and will serve to address the problem of cashout leakage that occurs disproportionately among Black and Hispanic workers.
Black Enterprise's Jeffrey McKinney examines the "reconnection" between "serial entrepreneur Robert Johnson and media mogul John Malone" -- taking the form of a minority stake investment by Malone in Retirement Clearinghouse (RCH). In the piece, Malone cites RCH's 401(k) auto portability as the kind of practical "inclusive capitalism" that motivated his action. McKinney cites Johnson's economic activism and quotes Johnson, who states that the pair "have a long history of taking on big challenges" and with Malone's guidance, will "do our part to close the wealth gap for America's minority communities."