News

6 Steps to a Strong Missing Participant Policy

Having a documented missing participant policy is about fulfilling a plan sponsor’s fiduciary duty to act in the best interests of plan participants, and to ensure that they receive benefits they are owed. It not only guides a plan sponsor’s actions, but it can also signal to regulatory agencies that a sponsor is serious about undertaking reasonable efforts to identify and locate missing participants. Writing in 401k Specialist, RCH’s Tom Hawkins provides readers with six steps that are useful for building a strong missing participant policy, and in establishing the framework that guides efforts to locate participants.

Saver's Match: New employer 401(k) option that expands access for low-income workers

Writing in BenefitsPro, RCH and PSN President & CEO Spencer Williams gives readers his take on the upcoming Saver's Match program, targeted for implementation for tax years following 2027. In the piece, Williams extols the benefits of the federal matching contributions, which have the potential to generate a substantial amount of retirement income for low-income and minority savers. Williams illustrates two hypothetical scenarios for a 25-year-old and a 35-year-old, and cites recently released Saver's Match research from EBRI, as well as Boston Research Technologies and RCH -- both indicating a sizable impact of the program. Finally, Williams urges employers to "accommodate these eligible savers by ensuring their plans can accept rollovers of IRAs" -- paving the way for Saver's Match contributions to keep pace with a mobile workforce.

Bob Johnson’s Vision for Reshaping Retirement Security

In an interview with WayMaker Journal, Retirement Clearinghouse (RCH) and Portability Services Network (PSN) Chairman Robert L. Johnson "explains how retirement saving works, why it matters, what he is doing to improve the system and how you can benefit." In the Q&A, Johnson delivers a primer on retirement savings, America's mobile workforce and the importance of PSN and auto portability in preserving retirement savings. Johnson also offers his views on the Saver's Match, a federal program that he believes "may be the incentive needed to encourage minorities to....start saving to improve their financial outlook in retirement." Johnson closes the interview with an optimistic outlook on the prospects for success in "closing the retirement savings shortfall in our country."

America’s Mobile Workforce Meets Their Saver’s Match

Writing in 401k Specialist, RCH's Tom Hawkins summarizes the findings in a new survey of American workers who would be eligible to receive a Saver’s Match federal matching contribution, a program that will go live for tax years following 2027. The survey confirms the significant public policy benefits that the program could have in leveling the playing field for lower income savers – particularly for Black and Hispanic workers – while also finding that high levels of worker mobility could pose challenges in administering millions of annual matching contribution payments.

Previously featured in RCH's Consolidation Corner blog

This Earth Day, recycle 401(k) savings to avoid IRA landfill

On April 22, we will celebrate the 54th annual Earth Day, which gives us the opportunity to celebrate our planet’s natural surroundings and contemplate how we can help preserve them. The advent, and ongoing expansion of recycling programs has enabled our society to reduce our waste—and although there is still quite a long way to go, we have evolved significantly from the post-World War II throwaway culture. Writing in Employee Benefit News, RCH President & CEO Spencer Williams uses the occasion of Earth Day to extend the recycling concept to our nation's 401(k) system, where auto portability can facilitate the emergence of a more sustainable paradigm, increasing retirement security for millions of Americans.

Saver’s Match Has Potential to Incentivize Retirement Savings for Lower-Income Americans

PLANSPONSOR's Remy Samuels reports on new research conducted by Boston Research Technologies and Retirement Clearinghouse on the Saver's Match program, which surveyed more than 3,000 retirement savers who would meet the qualifications to be eligible to receive a program matching contribution. Samuels reports on the survey's findings indicating that the program would incentivize more savings and could benefit minorities disproportionately. Samuels also points to findings that the program may face challenges in routing matching contributions to valid, qualified accounts, due to worker mobility.

Tapping retirement funds is a terrible idea

Writing in AOL / Yahoo Money, retirement correspondent Kerry Hannon informs readers about the pitfalls of prematurely cashing out retirement savings. Hannon turns to WISER Women's Cindy Hounsell, who counsels savers to utilize the Retirement Clearinghouse (RCH) cashout calculator to understand how much retirement savings they'll be forgoing if they make this unfortunate decision.

Federal saver’s match could spur 8.5 million Americans to save for retirement

Pensions & Investments correspondent Margarida Correia reports on the results of a new survey-based analysis of the Saver's Match program, which, consistent with recent research from EBRI, projects an 8.5 million net increase in retirement savers as a result of the initiative, which goes live for tax years following 2017. The survey was a collaboration between Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH) and surveyed over 3,000 savers and non-savers who could be eligible for a federal matching contribution under the program. Correia quotes BRT CEO and Co-Founder Warren Cormier on the positive behavioral impacts of the Saver's Match program revealed in the survey.