Recent Developments

401(k) Real Talk Episode 48: February 22, 2023

Fred Barstein, in his recurring 401(k) Real Talk series, addresses timely and important developments in the 401(k) industry. Barstein notes the 2/13/23 announcement by Empower, joining the Portability Services Network (PSN). Barstein states: "all told, the group administers a stunning 60.8 million accounts and 118,000 plans," while adding: "the impact should have much more far-reaching effects by establishing an industry-accepted data exchange which could facilitate other participant services."

Advances in Automatic Portability for Retirement Plan Balances

The PNC Insights blog examines the latest advances in auto portability, including recent developments associated with the Portability Services Network (PSN) and enactment of SECURE 2.0 provisions that "pave the way for retirement plans and recordkeepers to offer automatic portability provisions for amounts transferred to a default IRA." The piece quotes Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity and PSN Board Member.

Empower joins group providing portability of retirement savings

InvestmentNews reports on the 2/13/23 announcement from Empower that they are "joining the Portability Services Network, a group of record keepers, including Alight, Fidelity and Vanguard, working to promote auto-portability of defined-contribution plan assets." The piece cites EBRI data on cashout leakage and quotes Robert L. Johnson, chairman of the Portability Services Network and the Retirement Clearinghouse (RCH).

Auto Portability Consortium Adds Empower

401k Specialist Editor-in-Chief Brian Anderson writes that "[t]he fledgling Portability Services Network added another major recordkeeper this week with the news that Empower has joined the consortium in an effort to help accelerate the nationwide adoption of auto-portability with 401(k) accounts." Anderson notes that "adding Empower will bring approximately 17 million more retirement plan participants in more than 70,000 plans" to PSN, and quotes Empower President & CEO Edmund F. Murphy III and Robert L. Johnson, Chairman of The RLJ Companies and Chairman of Portability Services Network and Retirement Clearinghouse.

A $1.2T-AUA RKer Buys into PSN

The 401kWire's Neil Anderson reports on the 2/13/23 announcement from Empower that they are "buying into a new retirement plan industry consortium that focuses on auto-portability" and "boosts PSN to four recordkeepers with 56 million participants, which is more than half of all DC participants." RCH and PSN President & CEO Spencer Williams tells Anderson "it takes critical mass to a new level, we're very happy to have them on board." Looking ahead, Williams notes that PSN is "filling out those board seats nicely. It's a near certainty that our remaining two seats will be filled by our March 31 deadline.

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PRESS RELEASE: Empower Joins New Consortium to Accelerate Adoption of Auto Portability

GREENWOOD VILLAGE, COLO. (February 13, 2022) – Empower will join forces with the Retirement Clearinghouse, LLC (RCH) and other leading retirement services providers in a new consortium to accelerate the nationwide adoption of auto-portability to help more American workers improve their retirement outcomes. Under the new consortium, called the Portability Services Network, LLC (PSN), workers with lower balances who change employers can have their workplace retirement savings automatically moved to their new retirement plans.

Auto Portability Consortium Picks up Steam with Newest Member

NAPA Net's Ted Godbout writes about the 2/13/23 announcement from Colorado-based giant Empower that they "will join forces with the Retirement Clearinghouse (RCH), along with Vanguard, Fidelity and Alight, as part of the PSN to accelerate the nationwide adoption of auto-portability to help more American workers improve their retirement outcomes." Godbout highlights statements in the announcement from Empower's Edmund F. Murphy III, RCH-PSN Board Chairman Robert L. Johnson, and RCH-PSN President & CEO Spencer Williams.

Empower joins Fidelity, Vanguard and Alight in Portability Consortium

PLANSPONSOR's Alex Ortani reports on the news that Empower Retirement is the latest recordkeeper to sign on with the Portability Services Network (PSN), an industry-led utility focused on accelerating the nationwide adoption of auto portability. Ortani quotes Empower President & CEO Edmund F. Murphy III from the Monday, 2/13 announcement as well as RCH and PSN President & CEO Spencer Williams, who offers his views on the most recent developments.

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