Recent Developments

2022: A Most Consequential Year for Retirement Savings Portability

Last year at this time, Retirement Clearinghouse (RCH) predicted that 2022 would be a pivotal year for retirement savings portability. It turns out we were right, but we confess to being pleasantly surprised at just how consequential (and positive) the year has been, and it’s not over yet. Writing in 401k Specialist, RCH's Tom Hawkins provides a rundown of key events during 2022 that have helped to positively shape the future of retirement savings portability.

Webinar Showcases Extraordinary Industry Alignment on Auto Portability

For defined contribution recordkeepers, competition has long been fierce, so it’s extraordinary when industry rivals join forces and align around a common cause. That alignment around auto portability, embodied in the newly launched Portability Services Network (PSN), was on full display in a 12/8/22 Groom Law Group webinar. The event featured representatives from retirement industry titans and founding PSN members Alight Solutions, Fidelity Investments and the Vanguard Group, joined by Retirement Clearinghouse (RCH) EVP Neal Ringquist. Watch a video replay of the webinar and read a summary of the event.

Previously featured in RCH's Consolidation Corner

Fidelity 401(k) Balances Drop 23%, But Default Savings Hold

PLANSPONSOR's Alex Ortolani reports on Fidelity's press release featuring their Q3 2022 retirement analysis, and includes quotes from Kevin Barry, president of Workplace Investing at Fidelity Investments. Ortolani writes: "Fidelity’s Barry also spoke in the release to the importance of retirement savers not leaving behind savings plans when they change jobs. Just last month, the Boston-based firm joined with Vanguard and Alight to create a consortium to tackle the issue of 'cash-out leakage' from participants leaving behind small retirement accounts" and quotes Barry as stating that “[a]uto-portability can play a crucial role in increasing retirement security for these Americans."

Also featured in PlanAdviser

Fidelity® Q3 2022 Retirement Analysis: Despite Continued Volatility, Retirement Fundamentals Remain Sound

In a press release where Fidelity Investments provides their 3rd quarter 2022 retirement analysis, Kevin Barry, president of Workplace Investing at Fidelity Investments found the opportunity to address the need to stem 401(k) cashout leakage via auto portability. In the release, Barry states: "Auto-portability can play a crucial role in increasing retirement security for these Americans by automating the movement of an inactive retirement account seamlessly into the active account of a new employer’s plan, potentially preserving trillions of dollars in future savings.”

Auto-Portability Receives Bipartisan Backing with House Bill

401k Specialist's Amanda Umpierrez examines HR 9252, auto portability legislation recently introduced to the House of Representatives by Reps. Brad Schneider (D-IL) and Ron Estes (R-KS). Umpierrez turns to Renee Wilder-Guerin, RCH's EVP, Public Policy, who states: “[w]e hope that it indicates that not only do we have support for auto-portability on the Senate side, but we have support on the House, and that increases the chances of auto-portability language being included in SECURE 2.0.”

Auto-Portability Secures Bipartisan Backing in the House

NAPA Net reporter Ted Godbout analyzes the recently-introduced Advancing Auto-Portability Act of 2022 (H.R. 9252), which was proposed Oct. 28 by Reps. Brad Schneider (D-IL) and Ron Estes (R-KS), who are both members of the House Ways and Means Committee, where the legislation was referred. As Godbout points out, this companion bill to the previously-introduced Senate proposal of the same name means that auto portability legislative proposals enjoy both bicameral as well as bipartisan support.
Also featured in ASPPA Net

401(k) auto-portability bill floated in House

P&I DC reporter Brian Croce covers HR 9252 (Advancing Auto-Portability Act of 2022), introduced October 28th by Rep. Brad Schneider, D-Ill., and Rep. Ron Estes, R-Kan. The bill, writes Croce, "is a companion bill to legislation with the same name introduced in June by Sens. Tim Scott, R-S.C., and Sherrod Brown, D-Ohio, that's aimed at reducing plan leakage."

Large providers team up for auto portability

Writing in JD Supra, The Rosembaum Law Firm's Ary Rosenbaum observes that "Fidelity Investments, Vanguard, and Alight Solutions have teamed up with Retirement Clearinghouse, LLC (RCH) to create a consortium of workplace retirement plan recordkeepers, Portability Services Network, LLC, to accelerate the nationwide adoption of auto portability.