Recent Developments

This Network Will Soon Connect 5MM Participants

The 401kWire's Selma Khennisi reports on the 12/3 announcement from the Portability Services Network, which offers an update on key year 1 developments, including the network's onboarding of approximately 15,000 plan sponsors representing 5 million participants. Khennisi quotes PSN & RCH Chairman Robert L. Johnson, who congratulates PSN members on the accomplishment, which PSN & RCH President and CEO Spencer Williams further characterizes as "an incredible response."

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1 Year in, PSN Covers 15,000 Retirement Plans

PlanAdviser's Alex Ortolani reports on the 12/3 announcement from the Portability Services Network (PSN) that, one year into operation, over 15,000 plan sponsors representing 5 million participants have elected to adopt auto portability. Ortolani notes that the results represent the efforts of 3 member recordkeepers who have gone live in 2024, with 2 more anticipated to go live in 2025.

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Auto Portability Adoption Surges with Portability Services Network Launch

Writing in 401k Specialist, Editor-in-Chief Brian Anderson covers the 12/3 announcement from the Portability Services Network (PSN) that, in its first year of operation, over 15,000 plan sponsors representing 5 million participants have elected to adopt auto portability. Anderson quotes Robert L. Johnson, Chairman of PSN and Retirement Clearinghouse (RCH), as well as Spencer Williams, who serves as President & CEO of PSN and RCH.

PRESS RELEASE: Portability Services Network Jump-Starts Nationwide Adoption of Auto Portability

CHARLOTTE, NC—December 3, 2024—Portability Services Network (PSN) announces that, in its first year of operation, more than 15,000 plans representing approximately 5 million participants have signed up for auto portability. Robert L. Johnson, Chairman of the Portability Services Network and Retirement Clearinghouse, said, “I heartily applaud the six recordkeepers that launched Portability Services Network for their unwavering commitment to improving the retirement welfare of America’s under-saved and under-served workers. Auto portability was conceived as an innovation to benefit minority and women savers, and it is immensely gratifying to witness its coming to fruition through the hard work of Alight, Vanguard, Fidelity Investments, Empower, TIAA, and Principal^® to make auto portability a reality. We encourage more plan sponsors and recordkeepers to join and do their part to assist low-income workers in achieving a financially secure retirement."

'Portability' is set to boost and solidify $9.3 trillion 401(k) system by eliminating cash-outs, rollovers and fragmented (orphaned) plans

RIABiz's Brooke Southall, founder of RIABiz -- described as the "news, vision & voice for the advisory community -- writes about the DOL's "proposed rule [that] would implement Section 120 of the SECURE 2.0 Act" -- known as auto portability. In his piece, Southall voices his own views, and turns to industry experts, all of whom are positive about the recent developments and the future prospects for auto portability. Southall quotes Retirement Clearinghouse (RCH) and Portability Services Network (PSN) president & CEO Spencer Williams on the benefits of auto portability, and writes that large 401(k) recordkeepers "created a consortium for portability among themselves, with the technology of Retirement Clearinghouse."

EBSA’s Lisa Gomez Calls Auto-Portability Key to Retirement Security

PLANSPONSOR's Alex Ortolani reports on commentary from Assistant Secretary of Labor Lisa Gomez, the head of the DOL's Employee Benefits Security Administration (EBSA), who highlighted efforts by EBSA to advance final rules on auto portability. The proposed rules, which hit the Federal Register Monday, initiate a 60-day comment period that will end March 29. Ortolani writes that Gomez "highlighted the [auto portability] provision as one of several into which EBSA is digging in this year."

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DOL proposes new 401(k) ‘auto-portability’ regulations for job changers

BenefitsPRO's Scott Wooldridge informs readers about "another step forward" for auto portability, when the Department of Labor's Employee Benefits Security Administration (EBSA) released its proposed rules associated with SECURE 2.0. Wooldridge provides a summary of the new rules, and quotes American Retirement Association (ARA) CEO Brian Graff as stating: “We appreciate the guidance provided by the DOL. Anything that reduces the rate of retirement plan leakage results in better outcomes for participants.”

DOL Wants to Allow 'Reasonable' Fees for Porting Small 401(k)s

Alex Padalka, writing in Financial Advisor IQ, reports on the news that the Department of Labor has proposed rules for the automatic portability of small-balance retirement accounts. Padalka notes that the SECURE 2.0 legislative mandate, when combined with the proposed DOL rules, would replace the prior regulatory-only framework granted to Retirement Clearinghouse, and further observes that, for all practical purposes, the rules would only apply to the Portability Services Network, an industry-led consortium initially formed in 2022.