Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
So Happy Together: Auto Portability & Authorized Portability
Writing in the Consolidation Corner blog, RCH’s Tom Hawkins examines the positive interplay between auto portability and its nearly-automatic cousin – which he terms “authorized” portability. Authorized portability, writes Hawkins, occurs when a safe harbor IRA account not originating from within the auto portability network is matched to an active account in a plan that’s already adopted auto portability. While the accountholder must provide their consent to consolidate the balance, a frictionless automatic roll-in results, producing a win-win-win for participants, for plan sponsors and for adopting recordkeepers.
Don’t Relegate Lost & Missing Accounts to the Lost & Found—Consolidate Them in the Retirement System
RCH’s President & CEO Spencer Williams, writing in the Consolidation Corner Blog, opines on draft provisions in SECURE 2.0 legislation that call for establishment of a “lost & found” – including housing sub-$1,000 balances for all terminating 401(k) participants. As proposed, Williams observes that simply moving sub-$1,000 balances to the PBGC does little to reduce cashouts or stranded savings and offers auto portability as a “far more constructive method” to reduce cashouts and to promote consolidation of retirement savings.
New Data Proves Effectiveness of 401k Auto-Portability
Writing in 401k Specialist, RCH’s Tom Hawkins examines new data collected from a large plan sponsor who’s implemented auto portability’s key technology components, but requires affirmative consent from participants in order to consolidate their balances. The data reveals resounding success in the location of active plan accounts, in obtaining participant consent and in executing automated roll-ins -- all of which augur well for the future of auto portability and for consolidation of larger balances.
A Happy Ending for Consenting 401(k) Participants
Writing in the Consolidation Corner blog, RCH’s Tom Hawkins examines the “happy endings” possible for 401(k) participants who give their consent for moving their balances forward to their current-employer’s plan. In the piece, Hawkins reveals new data collected from a large plan sponsor who’s implemented auto portability’s key technology components, but requires affirmative consent from participants in order to consolidate their balances. The data shows resounding success in obtaining participant consent, which augurs well for the future of auto portability and for consolidation of larger balances.
DC industry must cooperate to resolve forgotten-accounts problem
Writing in InvestmentNews, contributor Fred Barstein addresses the issue of forgotten accounts, and turns to RCH President & CEO Spencer Williams for his views. Barstein writes "[w]hat is needed is a network of DC record keepers that share account information" and notes that Williams and RCH have been working on developing that "for more than a decade." Barstein quotes Williams, who states "no one argues against portability" while adding that "the network is the endgame" and requires "critical mass [to be successful]."
401k Retirement Savings: More Gone Than Forgotten
Writing in 401k Specialist, Tom Hawkins compares & contrasts the issue of ‘forgotten’ 401(k) accounts to its more problematic relative, 401(k) cashout leakage. In the piece, Hawkins takes the position that recent attention given forgotten accounts – via draft SECURE 2.0 legislation and the release of a drama-laden white paper – have created the mistaken impression that there’s a massive problem with forgotten 401(k) accounts, when in fact ‘forgotten’ 401(k) accounts are dwarfed by 401(k) cashout leakage, in terms of both their size and severity.
401(k) Retirement Savings: More ‘Gone’ Than ‘Forgotten’
Writing in RCH's Consolidation Corner, Tom Hawkins compares & contrasts the issue of ‘forgotten’ 401(k) accounts to its more problematic relative, 401(k) cashout leakage. In the piece, Hawkins takes the position that recent attention given forgotten accounts – via draft SECURE 2.0 legislation and the release of a drama-laden white paper – have created the mistaken impression that there’s a massive problem with forgotten 401(k) accounts, when in fact ‘forgotten’ 401(k) accounts are dwarfed by 401(k) cashout leakage, in terms of both their size and severity.
The Strong Case for a Retirement Savings ‘Lost and Found’
Writing in 401k Specialist Magazine, RCH's Tom Hawkins takes a deep dive into draft SECURE 2.0 provisions that dramatically expand the purpose, scope and scale of a Retirement Savings Lost & Found. Hawkins contends that the new provisions, as currently written, would create a massive, government-run repository of micro-balance accounts costing taxpayers millions, while failing to boost retirement security. Hawkins encourages Congress to return to an earlier Lost & Found model, while addressing the broader, small-balance account problem through policies that incentivize the adoption of auto portability.
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