Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
Why the Case for 401k Auto Portability Just Got Stronger
With the 4/22/21 release of EBRI's 31st annual Retirement Confidence Survey (RCS), the case for auto portability just became a whole lot stronger. Why? RCH's Tom Hawkins, writing in 401k Specialist, points readers to the RCS finding that nearly 9 in 10 participants believe that auto portability would be a valuable plan feature. Even more impressive than the overall response, the survey also found that specific demographic segments that benefit the most from auto portability want it even more -- including minorities, younger age groups and lower income segments. Hawkins' piece also includes a link to a new video, The Case for Auto Portability.
The Case for Auto Portability Gets Stronger
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.
Portability on Steroids: Let’s See It! – Part Two
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.
Portability on Steroids: Let’s See It!
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.
Consolidating the Gains from a Program of Retirement Savings Portability
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.
Alight 2020 Hot Topics: Most Employers Interested in Auto Portability
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."
Auto Portability Featured in Senate Finance Subcommittee Hearing
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).
Retirement Clearinghouse receives investment from billionaire John C. Malone
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.
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