Consolidation Corner

The ABCs of Auto Portability

Posted by Thomas Hawkins on Jan 19, 2017 3:53:20 PM

 

 

This video presentation is designed to give the viewer a basic understanding of Auto Portability.

 

What is Auto Portability?

Auto Portability is:

  • The routine, standardized and automated movement of an inactive participant’s retirement account from a former employer’s retirement plan to their active account in a new employer’s plan. 
  • Serves the needs of participants subject to mandatory distribution provisions of their employer-sponsored plan (separated participants with account balances less than $5,000) to curb excessive cash out leakage occurring as participants change jobs.
  • Could be adapted to larger account balances, should public policy dictate a higher mandatory distribution limit.

 

Why is Auto Portability needed?


Read More

Topics: Auto Portability, Managed Portability, Roll-In, Lifetime Plan Participation, Retirement Savings Portability, Thought Leadership, PSCA, Participant transition management

One 2017 New Year’s Resolution for Plan Sponsors: Encourage Roll-Ins

Posted by Neal Ringquist on Dec 12, 2016 8:04:12 AM



As 2016 draws to a close, most observers will reflect upon the events that have dominated retirement industry news coverage:  the Fiduciary Rule, the 10-year anniversary of the Pension Protection Act, and the Presidential election. These events will clearly shape plan sponsors’ activities and priorities for the New Year.

Less publicized, but perhaps more impactful are the recommendations provided in November, 2016 by the ERISA Advisory Council (EAC) on “Participant Plan-to-Plan Transfers and Account Consolidation for the Advancement of Lifetime Plan Participation” – released following three years of expert testimony.  

 
Plan sponsors would be well-served by reviewing the EAC’s Executive Summary and working the message of lifetime plan participation into their participant communications and retirement plan initiatives.

 

A good place to start is to encourage and facilitate plan-to-plan transfers, known as “roll-ins.” 

Read More

Topics: 401(k) Consolidation, Roll-In, PSCA, assisted roll-in, 401k Specialist

The ABCs of Roll-Ins

Posted by Thomas Hawkins on Aug 15, 2016 1:54:28 PM

With the advent of the Department of Labor's Fiduciary Rule, more employers are looking to promote lifetime plan participation and encourage participants to consolidate retirement assets in their current, active 401(k) plan. The plan feature to enable consolidation in the active 401(k) plan is the roll-in contribution. Retirement Clearinghouse is the recognized thought leader in roll-in facilitation.  We have prepared this video - The ABCs of Roll-Ins -- as a resource for plan sponsors who are considering a formal roll-in program, as well as offering a roll-in facilitation service for their plan participants.

 


This video presentation is designed to give the viewer a basic understanding of the concepts of qualified plan roll-in contributions.

What is a “Roll-In”?

Put simply, a “ roll-in” occurs when a participant elects to make a rollover contribution of qualified retirement savings from a former plan or IRA, and into their current, active employer-sponsored plan. 

Why are roll-ins getting attention?  

 

Read More

Topics: Auto Portability, Managed Portability, Roll-In, Lifetime Plan Participation, Retirement Savings Portability, Thought Leadership, PSCA, Participant transition management

Click Here To View RCH's Upcoming Events!

Consolidation Corner

Don't get left behind!!

Be sure to sign up to receive our emails keeping you up to date on all of the latest industry news, events and articles featuring Retirement Clearinghouse!

Click Here To Download  BRT's Executive Summary  on the Mobile Workforce

Subscribe to Email Updates