Media Coverage

How to Fill the ‘Leaky’ 401k Bucket

Writing in 401k Specialist, RCH’s Tom Hawkins opines on pending legislation that seeks to expand access for under-served and under-saved demographic segments, but may fall short if it fails to incorporate measures that minimize cashout leakage. Noting that SECURE 2.0’s expanded access provisions seek to benefit women, minorities and lower-income workers – the same demographic segments that cash out their small balance savings at disproportionate rates – Hawkins suggests that legislators consider inclusion of measures that would “spur more rapid adoption” of auto portability “by codifying into law the guidance issued by the Department of Labor and by creating modest tax incentives to encourage more early adoption of the feature.”

How could changing regulatory and business practices help to reduce 401(k) leakage?

Writing in their Research Minute blog, the DCIIA Retirement Research Center recaps a presentation by David John, senior strategic policy advisor at AARP, at their March 2022 RRC Summit. John shared current and ongoing research on retirement rollovers and the problem of plan leakage, including voicing his support for "supporting 'automatic portability' rollovers between employer plans when employees change jobs."

On Filling the Leaky 401(k) Bucket

Writing in the Consolidation Corner blog, RCH’s Tom Hawkins opines on pending legislation that seeks to expand access for under-served and under-saved demographic segments, but may fall short if it fails to incorporate measures that minimize cashout leakage. Noting that SECURE 2.0’s expanded access provisions seek to benefit women, minorities and lower-income workers – the same demographic segments that cash out their small balance savings at disproportionate rates – Hawkins suggests that legislators consider inclusion of measures that would “spur more rapid adoption” of auto portability “by codifying into law the guidance issued by the Department of Labor and by creating modest tax incentives to encourage more early adoption of the feature.”

The Next Area to Tackle for Preserving Retirement Savings: Uncashed Distribution Checks

Writing in the RCH Consolidation Corner blog, RCH President & CEO Spencer Williams examines the ongoing problem of uncashed distribution checks. Worker mobility, as well as the prevalence of automatic cashouts for balances under $1,000, conspire to create an administrative burden as well as a significant fiduciary risk for plan sponsors. Auto portability, writes Williams, can “mitigate this exposure, and help participants increase retirement savings, by significantly reducing the need for automatic cash-outs” while simultaneously minimizing cashouts, a situation that Williams describes as “a win-win.”

401k Auto Portability Featured in Senate HELP Committee Hearing

Writing in 401k Specialist Magazine, Renée Wilder Guerin, RCH’s EVP of Public Policy, examines the 3/29/22 hearing held by the U.S. Senate Committee on Health, Education, Labor & Pensions (HELP), which focused on solutions that would enhance retirement security for Americans, particularly those who are under-served and under-saved. Two of the four witnesses, WISER’s Cindy Hounsell and The Aspen Institute’s Ida Rademacher offered testimony highlighting the benefits of auto portability in leveling the playing field for women, minorities, and lower income workers. The latest hearing, writes Wilder Guerin “builds on previous Senate hearings and fuels growing momentum for auto portability among legislators, policymakers, advocacy groups, providers and plan sponsors.”

PSCA Executive Report Recaps Senate HELP Committee Hearing

PSCA's Executive Report provides its plan sponsor membership with highlights from the 3/29/22 U.S. Senate HELP Committee's hearing on improving retirement security. The hearing featured testimony from Cindy Hounsell, President and Founder of the Women’s Institute for a Secure Retirement (WISER), and Ida Rademacher (The Aspen Institute), who both addressed the need for improved retirement savings portability. Hounsell's testimony referenced three interventions that could help, including "auto-portability to help prevent workers who change jobs from cashing out their retirement savings. "

Auto Portability’s Key Role Featured in U.S. Senate HELP Committee Hearing

Renée Wilder Guerin, RCH’s EVP of Public Policy, examines the 3/29/22 hearing held by the U.S. Senate Committee on Health, Education, Labor & Pensions (HELP), which focused on solutions that would enhance retirement security for Americans, particularly those who are under-served and under-saved. Two of the four witnesses, WISER’s Cindy Hounsell and The Aspen Institute’s Ida Rademacher offered testimony highlighting the benefits of auto portability in leveling the playing field for women, minorities, and lower income workers. The latest hearing, writes Wilder Guerin “builds on previous Senate hearings and fuels growing momentum for auto portability among legislators, policymakers, advocacy groups, providers and plan sponsors.”

Senate HELP Committee to Act on Retirement Security Legislation

NAPA Net's Ted Godbout covers the 3/29/22 U.S. Senate HELP Committee's hearing on improving retirement security. The hearing featured testimony from Cindy Hounsell, President and Founder of the Women’s Institute for a Secure Retirement (WISER), and Ida Rademacher (The Aspen Institute), who both addressed the need for enhanced retirement savings portability. Hounsell's testimony referenced three interventions that could help, including "auto-portability to help prevent workers who change jobs from cashing out their retirement savings. "

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