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Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
Vanguard, Fidelity Will Join a 401(k) Auto-Portability Network to Rescue $1.5 Trillion in Retirement Savings
Arturo Conde, an editor at SmartAsset, writes about the new, retirement industry-led consortium formed by Fidelity, Alight and Vanguard, in tandem with Retirement Clearinghouse (RCH). Conde's piece breaks down what the new collaboration will mean, including its impact on reducing cashout leakage by automating the movement of small-balance defined contribution balances following job changes. Conde also references related research, proposed US Senate legislation on auto portability, and links to an auto portability infographic.
EurWeb.com's Ny MaGee provides his readership with an update on the news that BET founder Bob Johnson "has teamed with three of the largest 401(k) record keepers to help improve retirement outcomes for Black American workers over a generation by eliminating early cash-outs of 401(k) funds." Johnson, also the founder & chairman of the RLJ Companies, and the chair and majority owner of Retirement Clearinghouse (RCH), is quoted as stating that the new venture is "truly a historic moment for the industry, as well as our country and is the first step to reduce the wealth gap between Black and white households in this country."
Fresh from announcing the formation of a new retirement industry-led consortium, Bob Johnson, BET founder and founder and chairman of The RLJ Companies, discloses that he will be one of many prominent speakers at Black Enterprise's 2022 Black Men Xcel Summit, taking place Oct. 12-14 in National Harbor, MD. The article, which promotes the event, also provides numerous details on the Portability Services Network (PSN), which reporter Jeffrey McKinney notes is "expected to launch in the first quarter of 2023, [and] will be improving financial security for individuals and helping them avoid cashing out of their 401(k) accounts early."
Alex Padalka, reporting for Financial Advisor IQ, writes about the new industry-led consortium, known as the Portability Services Network (PSN), where "rivals...have joined forces in what they say is an attempt to 'accelerate' U.S. adoption of automatic portability of 401(k) and other retirement savings plans." Padalka continues: "[t]he consortium will tap the auto-portability capabilities of Retirement Clearinghouse" while looking to expand its already sizeable footprint in the 401(k) recordkeeping space.
Jeffrey McKinney, Black Enterprise contributor, reports that "BET founder and business mogul Bob Johnson is taking his biggest plunge to help close or narrow the nation’s lingering racial wealth gap." McKinney interviews Johnson to get the details on news that Retirement Clearinghouse (RCH), an RLJ Company chaired by Johnson, has partnered with Fidelity, Alight Solutions and Vanguard to form the industry's first-ever consortium, the Portability Services Network (PSN), whose aim is "to accelerate the nationwide adoption of auto portability to help America’s underserved and under-saved workers enhance their finances in their golden years." Johnson hails the development as "truly a historic moment" across a number of dimensions, but most notably in its prospects for reducing the minority wealth gap in America.
BET Founder Bob Johnson Joins With the Three Largest 401(k) Recordkeepers to Save $619 Billion For Black Americans
Black PRWire covers the 10/5/2022 Announcement that Fidelity, Vanguard and Alight Solutions have teamed with Retirement Clearinghouse (RCH), an RLJ Company, to form the first-ever industry consortium to address the problem of 401(k) cashout leakage, a persistent problem that disproportionately affect women and minorities, but particularly Black Americans. The article includes quotes from Mr. Johnson, RCH's Chairman, BET founder and Chairman of the The RLJ Companies. Johnson hailed the agreement as representing "truly a historic moment for the industry, as well as our country and is the first step to reduce the wealth gap between Black and white households in this country. "
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MoneyTalkNews writer Chris Kissell reports on the announcement that Fidelity, Alight and Vanguard have joined with Retirement Clearinghouse (RCH) to form an industry-led consortium to facilitate the rapid adoption of auto portability. Kissell explains to readers that the "Portability Services Network will serve as a clearinghouse for finding a participant’s workplace retirement account at the workplace he or she is leaving and transferring the account into the active account with the new employer."
PLANSPONSOR's DJ Shaw reports on the partnership between Retirement Clearinghouse (RCH) and an industry-led consortium, initially comprised of Fidelity, Alight Solutions and Vanguard. The consortium, writes Shaw, "seeks to tackle the issue of cash-out leakage from small retirement accounts and accelerate the nationwide adoption of auto-portability." Shaw first turns to RCH Executive Vice President Neal Ringquist, who states: "there’ll be an enormous amount of pressure on the industry to adopt auto-portability and it’s a level playing field for everybody that participates." Pointing to the uniqueness of the arrangement, RCH president & CEO Spencer Williams adds: “[t]here is no precedent for [this type] of an effort with three record keepers locking arms and saying, we’re going to tackle this issue of cash out leakage for small accounts.” In closing, Ringquist points to the prospect of favorable federal legislation, potentially coming in the form of the Advancing Auto-Portability Act of 2022, which could be incorporated into a bicameral SECURE 2.0 bill.