Media Coverage

3 Ways Auto Portability Promotes 401k Financial Wellness

In the 4th installment of his five-part series in 401kSpecialist, RCH's Tom Hawkins examines how a program of auto portability can enhance 401(k) participants' financial wellness. To make his case, Hawkins identifies three ways auto portability promotes financial well-being, including: 1) preventing unnecessary 401(k) cashouts, 2) helping 401(k) participants clear the "$10,000 hurdle" and 3) simplifying retirement planning.

Job hopping can hamper retirement savings — but it doesn’t have to

In his latest article in Employee Benefit News, RCH President & CEO Spencer Williams advises retirement plan sponsors to consider tracking the average percentage of retirement savings that participants retain during their tenure. Auto portability, says Williams, can enable participants to preserve their small-balance savings through job changes. Going further, Williams encourages plan sponsors and consultants to apply the all-important “participant-retained savings” lens when evaluating their automatic rollover programs, including metrics such as cash-out rates, median safe harbor IRA account duration and provider support for consolidation.

EBRI's VanDerhei Addresses PSCA Conference, Including Auto Portability Update

ASPPA Net's John Iekel covers EBRI Research Director Jack VanDerhei's 5/1/19 presentation before the PSCA National Conference, where VanDerhei provided an update on auto portability's benefits, as calculated in EBRI's Retirement Security Projection Model (RSPM). According to Iekel, VanDerhei asserted that "introducing auto-portability for participants who are Gen Xers reduced retirement savings shortfalls for couples regardless of which dies first, and for single people regardless of gender."

Also Featured in NAPA Net (link)

How Auto Portability Serves Participants’ Best Interests: Pt 4 Auto Portability Enhances Participants’ Financial Wellness

In the 4th installment of his five-part series on "How Auto Portability Serves Participants' Best Interests", RCH's Tom Hawkins examines how a program of auto portability can enhance 401(k) participants' financial wellness. To make his case, Hawkins identifies three ways auto portability promotes financial well-being, including: 1) preventing unnecessary 401(k) cashouts, 2) helping 401(k) participants clear the "$10,000 hurdle" and 3) simplifying retirement planning.

Got a New Job? Here’s What to Do With Your Old 401(k)

The Penny Hoarder's Sarah Kuta runs down the options facing 401(k) participants when they change jobs, including 1) leaving their savings in the plan, 2) rolling into a new employer's plan, 3) rolling over to an IRA and 4) cashing out. When it comes to cashing out, Kuta warns participants against this damaging behavior, citing a 2017 report by Retirement Clearinghouse, entitled "The Fundamentals of 401(k) Cashout Leakage" which takes a comprehensive view of America's 401(k) cashout leakage problem.

Mercer Exec: Auto Portability 'Essential for Shoring Up US Retirement System'

In his capacity as Head of US Defined Contribution and Financial Wellness Research, Mercer's Neil Lloyd notes the recent emergence of serious industry dialogue on plan-to-plan retirement savings portability. Long a proponent of portability, Lloyd recognizes the inherent problems associated with holding multiple retirement saving accounts. In his piece, Lloyd strongly advocates for auto portability, stating that it "might be the solution to less efficient small-balance accounts." Lloyd goes further, opining that auto portability should be considered a legislative priority, writing that "SECURE ACT 2 will be vastly improved if provisions further supporting auto-portability are included."

401kTV Features Auto Portability as Key to Cybersecurity Risk Management

401kTV's Steff Chalk examines the issue of 401(k) cybersecurity, specifically focusing on the benefits of auto portability in the management of cybersecurity risk. Referencing RCH President & CEO Spencer Williams' recent article in Employee Benefit News, Chalk states that "the technology that makes 401k auto-portability possible may also enhance existing industry best practices that protect plan participants’ personal data." Chalk also adds that "plan sponsors [should] embrace 401k auto-portability to lessen the instances of small-balance accounts and missing participants."

A Plan Metric Every Sponsor Should Track: Participant-Retained Retirement Savings

In his latest article in Consolidation Corner, RCH President & CEO Spencer Williams advises retirement plan sponsors to consider tracking the average percentage of retirement savings that participants retain during their tenure. Auto portability, says Williams, can enable participants to preserve their small-balance savings through job changes. Going further, Williams encourages plan sponsors and consultants to apply the all-important “participant-retained savings” lens when evaluating automatic rollover programs, including metrics such as cash-out rates, median safe harbor IRA account duration and provider support for consolidation.