Auto Portability in the News
Browse the most comprehensive collection of articles in the media that feature auto portability.
Extend the Spirit of the CARES Act to Automatic Rollovers
In light of the COVID-19 crisis, RCH's Tom Hawkins examines another burden borne by millions of participants, when they’re furloughed or laid off and become subject to ‘traditional’ automatic rollover IRAs – where they’ll likely face high levels of cashouts, predatory fees and barriers to exit. Now, more than ever, it’s important for sponsors to act and to redress this burden. For sponsors utilizing traditional automatic rollover IRAs, Hawkins urges them to demonstrate their caring through three actions that will help address the problem and will deliver significant societal benefit.
Let’s Extend the Spirit of the CARES Act to Automatic Rollover IRAs
In light of the COVID-19 crisis, RCH's Tom Hawkins examines another burden borne by millions of participants, when they’re furloughed or laid off and become subject to ‘traditional’ automatic rollover IRAs – where they’ll likely face high levels of cashouts, predatory fees and barriers to exit. Now, more than ever, it’s important for sponsors to act and to redress this burden. For sponsors utilizing traditional automatic rollover IRAs, Hawkins urges them to demonstrate their caring through three actions that will help address the problem and will deliver significant societal benefit.
P&I: Preston Rutledge's legacy to include auto portability
Covering breaking news, P&I's Washington, DC reporter Brian Croce informs readers about the pending departure of Preston Rutledge, assistant secretary of labor for the Employee Benefits Security Administration (EBSA). With no official announcement by the DOL, Croce turns to Michael Kreps, a principal at Groom Law Group, for comment. Kreps states in an email that "Preston is a dedicated public servant, and his legacy at the department includes important work on pooled retirement plans and auto portability" with Croce adding that auto portability "has a goal of significantly reducing plan leakage and missing participants."
401k Specialist Magazine Features Auto Portability
Issue 2, 2020 of the 401k Specialist Magazine features an article by RCH's Tom Hawkins. In his piece "The New Age of 401(k) Portability", Hawkins identifies clear, across-the-board indications that America's defined contribution (DC) system is entering a "new age" of plan-to-plan portability. Portability, Hawkins contends, is the "missing ingredient" that, when added to 401(k) plans, will resolve the damaging disconnect between America's highly-mobile workforce and their immobile retirement savings.
How Does Auto Portability Work? Watch the Video
Looking for a quick primer on how auto portability works? Watch the video embedded in this RCH Consolidation Corner article, which walks you through the four-step process. The video also introduces you to the key elements of participant communication that occur along the way. Enjoy!
The Institutionalization of Portability is Key to Reducing Cash-Out Leakage
In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams identifies plan-to-plan portability as a vital feature to prevent cashout leakage. Similar to the progress that's been made over the past decade in reducing plan fees, Williams makes the case that the inevitable "institutionalization" of portability will dramatically reduce cashout leakage and maximize participants' retained savings. Williams advocates for the adoption of a dual portability model, comprised of auto portability for small balances and a consent-based, concierge service for participants with larger balances.
How sponsors can help minorities save for retirement
In his latest byline in Employee Benefit News, RCH President & CEO Spencer Williams addresses the cashout leakage crisis, which disproportionately affects minorities, including African-Americans and Hispanics. Auto portability, says Williams, can make all the difference in solving the crisis, but requires that "sponsors themselves, as well as their recordkeepers, take the next step" and adopt the new plan feature. The adoption of auto portability, writes Williams, is completely consistent with a recent public statement released by the Business Roundtable, and endorsed by 181 CEOs of the nation's largest corporations.
SECURE Act Impact: 3% Reduction in Retirement Deficit?
401kSpecialist Magazine's Managing Editor Brian Anderson reports on EBRI's 2/21/20 Issue Brief, which examines key provisions of the SECURE Act. In his article, Anderson notes that the overall reduction in the nation's Retirement Savings Shortfall (RSS) directly attributed to the legislation is 3%. However, when EBRI factors in auto portability, Anderson writes that "the overall reduction in retirement savings shortfalls is 10.0%" -- a significant increase over baseline.
1916 Ayrsley Town Boulevard