Auto Portability - Recent Developments

Find the most-recent auto portability media coverage and developments.


Oct
12
2018

PLANSPONSOR Highlights 401(k) Consolidation Issue, Need for Auto Portability

In the August/September 2018 print edition of PLANSPONSOR, Editor-in-Chief Allison Cooke Mintzer addresses the problem of 401(k) cashouts, highlighting the need for consolidation via auto portability in her Insights column piece entitled "Making the Most of Savings: Is your plan designed to allow for employees to roll in their assets from a former plan?" Cooke Mintzer suggests to her plan sponsor audience that helping participants aggregate assets should "be near the top of your priority list, alongside the recent industry focus on financial wellness and debt management." Cooke Mintzer also cites statistics provided by RCH CEO Spencer Williams, noting the dramatic decrease in cashouts that occurs as balance levels rise above $20,000.

Oct
11
2018

RCH in BenefitsPRO: Pairing Savings Preservation with Expanded Access for Minorities

In their October 11, 2018 article in BenefitsPRO, RCH's Spencer Williams and Tom Hawkins address an important retirement public policy question: How would a pairing of auto portability with open multiple employer plans (or “open MEPs”) impact the retirement savings of America’s minorities, and particularly, African-Americans? The RCH analysis found that expanded access initiatives, such as open MEPs, could serve as a catalyst to increase minority participation in employer-sponsored 401(k) plans, but could fall short in preserving minorities' retirement savings. When combined with auto portability, open MEPs could generate far more wealth at retirement, and deliver greater retirement security for minorities.

Oct
10
2018

Barron's Article on 401(k) Leakage Features RCH Research

In her October 10th, 2018 article "Don't Let a 'Leaky' 401(k) Mess Up Your Retirement" Barron's reporter Reshma Kapadia examines the problem of 401(k) cashout leakage. Kapadia cites recent research by Retirement Clearinghouse, which explores the impact on minority savers of pairing savings preservation (via auto portability) with the open MEPs expanded access initiative.

Oct
05
2018

NAPA Net Readers Put Auto Portability on "Next Big Things" List for 2019

On 10/5/18, NAPA Net released the results of a reader poll, asking NAPA Net readers to identify the "next big things" in 2019. Auto Portability came in #7 on the list, ahead of perennial favorites such as "behavioral finance techniques" and "financial wellness." #1 on the list were multiple employer plans, or "open MEPs" - which was cited by 56% of respondents.

Sep
27
2018

Pairing 401(k) Savings Preservation and Expanded Access for America’s Minorities

In this article, RCH's Spencer Williams and Tom Hawkins address an important retirement public policy question: How would a pairing of auto portability with open multiple employer plans (or “open MEPs”) impact the retirement savings of America’s minorities, and particularly, African-Americans?

Sep
21
2018

Auto-Portability, Universal Coverage Would Reduce Retirement Shortfall

PLANSPONSOR's Lee Barney addresses new research released by EBRI, which models the effects of the Automatic Retirement Plan Act of 2017 (ARPA), and then combines ARPA with auto portability. The EBRI research reveals that if ARPA were to be combined with auto portability, the retirement savings shortfall (RSS) would dramatically reduce the $4.3 trillion deficit by $932 billion, or 22.6%.

Aug
23
2018

PLANSPONSOR Features RCH Analysis on Missing Participants and Cashouts

PLANSPONSOR's Rebecca Moore examines recent analysis by Retirement Clearinghouse that looks at the twin problems of 401(k) missing participants and cashouts. The RCH analysis, based upon RCH's Auto Portability Simulation and Boston Research Technologies' March 2018 Missing Participant Survey, compares and contrasts the two problems from a systemic perspective, and offers auto portability as a strategic solution to minimize both. Moore's piece also references a previous article by RCH CEO Spencer Williams, and quotes RCH's Neal Ringquist and Tom Hawkins.

Aug
16
2018

A Tale of Two 401(k) Balance Segments

RCH's Tom Hawkins reveals new research that predicts 401(k) participant outcomes following separation for two balance segments – those above & below $15,000. Using logic developed in the Auto Portability Simulation to track & tally participant outcomes 8 years following separation, the results reveal a startling contrast between the two segments – with participants in the over-$15,000 segment experiencing far-superior outcomes to those in the under-$15,000 segment. To address the disparities, Hawkins advocates for a new “automatic” in the form of auto portability.

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A Brief History of Auto Portability