Blog

Menu

Consolidation Corner Blog

Consolidation Corner is the Retirement Clearinghouse (RCH) blog, and features the latest articles and bylines from our executives, addressing important retirement savings portability topics.


Aug
11
2015

Automatically Moving Mandatory Distributions Forward

The Case for Automatically Moving Mandatory Distributions Forward

The mandatory distribution-to-Safe Harbor IRA plan feature as commonly utilized today was conceived in 2001 and launched in 2005 with good intentions, and for valid reasons. A mobile workforce, combined with a lack of retirement savings portability, had created a burgeoning problem for plan sponsors: an explosion of small-balance (less than $5,000) accounts left “stranded” in-plan, resulting in rampant cashouts, missing participants, uncashed distribution checks and the like. These problems only accelerated with the widespread adoption of auto enrollment, beginning in 2009.  

Read More
Aug
04
2015

What Participants’ Distribution Decisions Are Telling Us

“Make the smart decision the easiest decision.”

This seems like an obvious goal for plan sponsors when designing participant directed retirement plans, and it’s certainly driven the rapid adoption of the autos – auto enrollment, auto deferral escalation and auto pilot investment options, such as target date funds.

Read More
Jul
30
2015

Leaving Your 401(k) Savings Behind Will Cost You!

MarketWatchLeaving Your Retirement Savings Behind When You Change Jobs Will Cost You!

In his July 30th, 2015 MarketWatch article titled, Leaving Your 401K Behind When Changing Jobs Will Cost You, RCH’s CEO Spencer Williams gives sage advice to America’s mobile workforce, urging job-changing retirement savers to take the initiative and to consolidate their retirement savings.

Read More
Jul
27
2015

Consolidation: The Missing Piece of the Retirement Game Plan

Today, it’s a commonly-accepted practice for plan sponsors to focus on three major initiatives in order to promote retirement adequacy: participation, saving and diversification. While these concepts are proven, the emerging best practice is to incorporate the principle of consolidation, so that plan sponsors will begin to focus on participation, consolidation, saving and diversification.

Read More
Jul
17
2015

Safe Harbor IRAs Aren’t Always Safe

Employee Benefit NewsPlan sponsors can help themselves and their participants over the long term by rolling balances of $5,000 or less from inactive participants into safe harbor IRAs. However, for various reasons discussed below, many safe harbor IRAs don’t live up to their name and could leave sponsors with unexpected fiduciary liability.

Read More
Jul
16
2015

SOC Examinations Designed To Provide Comfort


AICPA Service Organization Control Reports SOC SAS 70 Reports Logo
Gaining Comfort That an External Plan Service Provider Has Adequate Security and Controls 

Read More
Jul
10
2015

Pitfalls Associated With Lost & Missing Participants

MarketWatch"Do You Feel Lucky 401(k) Saver? Do You?"

Collaborating with Retirement Clearinghouse, Boston Research Technologies completed groundbreaking research earlier this year on the mobile workforce and the job changer’s attitudes and behavior regarding their 401(k) accounts during job transition. When asked what these participants did with their prior employer 401(k) accounts, the majority of respondents indicated they left their balances behind with 53% of Millennials, the most mobile age cohort, indicating they had left at least one retirement account with their prior employer.

Read More
Jun
16
2015

How to Make Mandatory Distributions More Fiduciary Friendly

Employee Benefit NewsMandatory distributions from employer-sponsored plans are a creation of regulation—specifically, a section of ERISA that allows plan sponsors to distribute accounts with less than $5,000 out of a qualified plan and into a safe harbor IRA. If plan sponsors follow the rules, they are protected from legal recourse, and the rules are simple: act in a fiduciary manner when choosing a provider for their program. However, that word—“fiduciary”—is often hard to define and can be interpreted in many ways, so it begs the question: “How does a sponsor best fulfill that responsibility in the context of a mandatory distribution program?”

Read More
May
28
2015

Portability and the Mobile Work Force Webcast Recap

Boston Research Technologies

How Job Changing Impacts Retirement Savings 

In conjunction with Boston Research Technologies, RCH announced the findings of a groundbreaking research study on America’s mobile workforce, providing insights into participant behaviors regarding retirement savings portability. The study offers plan sponsors with strategies to stem cashouts and to improve retirement outcomes. On May 28th, RCH and Boston Research Technologies teamed with PLANSPONSOR to deliver a webcast, where attendees were presented the study’s key findings, implications and action items. 

Read More
May
15
2015

Enhance Auto Enrollment with Auto Portability

Employee Benefit NewsThe Pension Protection Act of 2006 created a safe harbor for retirement plan sponsors to automatically enroll employees in their plans. This provision was designed to help plan sponsors and participants over the long term, and it has—but it also unintentionally fueled a surge in small accounts, hurting both constituencies.

Read More
Page:
« 1 ...
»