Media Coverage

7 Things Retirees Can Be Thankful for This Year

Kate Stalter, who serves as an investment advisory industry expert for U.S. News & World Report, identifies the top 7 things that retirees can be thankful for this year. In her all-star lineup, she identifies 401(k) auto portability for special gratitude, and turns to Said Israilov, CFP and wealth advisor, who states: "[m]ajor record keepers like Fidelity and Vanguard have been implementing this technology to address a significant issue" in the form of excessive cashout leakage, adding "in 2025, more employers are expected to adopt this feature in their retirement plans, making it easier for workers to maintain and grow their retirement savings as they change jobs."

Also featured in MSN

Dressing Up Traditional Automatic Rollovers

Writing in the Consolidation Corner blog, RCH’s Tom Hawkins describes learning about the existence of so-called “world-class” automatic rollover IRA services which lay claim to unspecified, premium features. In his article, Hawkins characterizes them as “old-school, traditional automatic rollover IRAs” which place participants in high-fee, safe harbor IRA “landfills” where their small balances languish. What’s needed, writes Hawkins, is “not faux fancy features – it’s a low-fee, transitional safe harbor IRA that preserves small-balance retirement savings for only as long as they can be consolidated into a current-employer’s plan or into another IRA.”

Is It Time to End the 401(k)?

Writing in Think Advisor, Melanie Waddell addresses the controversial stance taken by academic Shlomo Benartzi, who blasts the 401(k) system's lack of portability, pointing to the Australian model as worthy of consideration for replacing 401(k) plans. Other industry observers are not too keen on Benartzi's idea, including Nevin Adams, who cites the Portability Services Network's embrace of auto portability, which "already connect[s] a half dozen of the nation's leading recordkeepers to facilitate exactly the type of job-to-job plan transfer Benartzi seems to think only a centralized government pool could accomplish."

Et tu, Shlomo?

Nevin Adams, writing in NAPA Net, takes on a leading behavioral science academic, Shlomo Benartzi, for his advocacy of "creating big government-run pools of retirement savings — where ALL retirement savings would be put." As a viable alternative to this "truly scary idea" Adams cites auto portability, noting that it's "an emerging capability — via networks like the Portability Services Network that already connect a half dozen of the nation’s leading recordkeepers to facilitate exactly the type of job-to-job plan transfer Benartzi seems to think only a centralized government pool could accomplish."

Job Changes Could Cost You $300K in Retirement Savings

Mary Helen Gillespie, writing in TheStreet, covers research recently released by Vanguard, revealing "that frequent job changes can lead to significant retirement savings losses" when job-changers' savings rates decline. Gillespie notes that the Vanguard study advocates investigating "the expansion of automatic portability via the Portability Services Network to include additional data feeds regarding the participant’s saving rate at their prior employer. This also could enable savings elections to transfer from plan to plan without participant engagement."

Pointers For Maximizing Clients' 401(k) Contributions

Writing in Financial Advisor, Ben Mattlin examines approaches for maximizing clients' 401(k) contributions. Mattlin notes that "job-hoppers" can often experience decreased savings rates following a job change, and quotes Vanguard's Kelly Hahn, head of retirement research at the firm. Mattlin cites Vanguard research that -- referencing auto portability -- advocates for "tech-enabled solutions such as the utility offered by the Portability Services Network, which uses a digital hub from the Retirement Clearinghouse that connects plan record-keepers with plan sponsors nationwide."

What You NEED to Know About Auto Portability: ASPPA Annual 2024

Reporting from the 2024 ASPPA Annual Conference, ARA's John Sullivan recaps a breakfast session, where Fidelity Investments’ TPA Programs Director Beth Robinson offered her perspective on auto portability, as delivered by the Portability Services Network. Robinson addressed the problems of cashout leakage, frequent job-changes and systemic friction that stand in the way of preserving small balances, a problem that disproportionately affects underserved and under-saved demographics. Robinson also offered attendees a primer on how auto portability works, including participant communications and the subsequent commencement of network locate-and-match processes.

Also featured in NAPA Net and in PSCA News

ERISA’s Golden Anniversary has Set the Stage for Helping Future Generations Improve Their Retirement Outcomes—in 2025 & Beyond

Writing in the Consolidation Corner blog Retirement Clearinghouse (RCH) and Portability Services Network (PSN) President & CEO Spencer Williams looks to the past and has his eye on the future, as ERISA celebrates its 50^th anniversary. Williams chronicles key participant-centric technologies that have emerged, including daily valuation, automatic enrollment and target date funds. Looking ahead, Williams points to the most impactful developments, including the formation of the Portability Services Network, which has embraced auto portability, “making it easy for participants to bring their retirement savings with them from job to job until retirement” and “optimiz[ing] what auto enrollment and target-date funds can do for American workers saving for retirement.”