Auto Portability - Recent Developments
Find the most-recent auto portability media coverage and developments.
Barrons: How to Fix the 401(k)
As part of their overall feature "40 Years of the 401(k) - The Good, the Bad and the Future", Barron's reporter Sarah Max examines 5 initiatives that could help "fix" the 401(k). At the top of her list is auto portability, which Max indicates could "reduce leakage that occurs when employees cash out of small plans." Other initiatives also mentioned include multiple employer plans (MEPs), the Automatic Retirement Plan Act of 2017 (ARPA), Guaranteed Retirement Accounts, and Icon.
Retirement Income Journal: ‘Auto-Portability’ Gets Closer to Reality
Retirement Income Journal Editor & Publisher Kerry Pechter addresses the recent actions by the U.S. Department of Labor, moving RCH's auto portability program closer to widespread adoption. Pechter provides readers with important context on the DOL's actions, including RCH's ongoing efforts and the public policy arguments in favor of auto portability. Pechter then shares insights from RCH's CEO Spencer Williams and Head of Policy & Development Tom Johnson.
SHRM: 401(k) Hardship Withdrawals, Account Transfers Might Get Easier
SHRM's Stephen Miller reports on recent actions by the Treasury Department (affecting hardship withdrawals) and the Labor Department, seeking comment on the Retirement Clearinghouse (RCH) auto portability program. The DOL's proposal, says Miller, "might keep retirement savings intact when an employee finds a new job" and added that "automatically transferring 401(k) accounts could leave departing participants with larger nest eggs since they would be less likely to cash out retirement funds."
Charlotte Business Journal: How this Charlotte retirement firm is driving change in 401(k) rollovers
The Charlotte Business Journal's Caroline Hudson covers the innovative direction taken by Charlotte, NC-based Retirement Clearinghouse (RCH) in the development and delivery of its auto portability program, the subject of recent, favorable actions by the U.S. Department of Labor. Hudson interviews RCH EVP and Chief of Sales Neal Ringquist.
EBN: Labor Department clears path for automatic 401(k) transfers
Employee Benefit News reporter Lee Conrad includes the U.S. Labor Department's guidance on auto portability in his daily roundup of retirement news, referencing Anne Tergesen's article in The Wall Street Journal. According to Conrad "analysts say that the guidance will help minimize 401(k) cash-outs of employees who switch jobs" and cites a quote in the article by Morningstar's Aron Szapiro.
Eversheds Sutherland: Legal Alert: DOL considers important efficiencies for the retirement system
The law firm of Eversheds Sutherland provides, in their latest Legal Alert, a summary of the DOL's recent actions concerning the Retirement Clearinghouse (RCH) auto portability program.
WISER: Labor Department Clears Path For Automatic 401(k) Transfers
The Women's Institute For A Secure Retirement (WISER) has posted an article to their website (www.wiserwomen.org), indicating support for the U.S. Department of Labor's recent actions on auto portability. The highly-influential organization -- dedicated to education and advocacy that will improve the long-term financial quality of life for women -- notes that "this news is especially good for women who often hold smaller account balances" and could stand to benefit disproportionately from auto portability.
PlanAdviser: Fiduciary Duties for Auto-Portability Solution Spelled Out by DOL
PlanAdviser reports on the Department of Labor's issuance of an advisory opinion letter in response to a request by Retirement Clearinghouse (RCH), for their opinion on the fiduciary status of parties as part of RCH’s Auto-Portability Program. The article notes that plan sponsors have a fiduciary responsibility for selecting and monitoring the auto portability program, but once assets are transferred to a default IRA under the program, the plan sponsor of the former employer's plan is no longer a fiduciary.
1916 Ayrsley Town Boulevard