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

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

First Half of 2016: A Look-Back at the Headlines Driving a New “Auto” for 401(k) Plans

Posted by Thomas Hawkins on Jul 28, 2016 11:51:10 AM


In the first half of 2016, not only has the retirement industry awakened to the problem of cashout leakage, but it’s begun to acknowledge its root cause: a lack of retirement savings portability. At the same time, Auto Portability has emerged as the only viable solution to cashout leakage, delivering portability for the small-balance (less than $5,000) job-changer, automatically moving their balances forward when they change jobs and enroll in a new plan.

 

Let’s look-back at the first half of 2016 and see how Auto Portability may now be poised to become an “overnight success” in the not-too-distant future.


Quarter 1 / 2016: Retirement Savings Portability Goes Mainstream

Kicking off the New Year with a bang, President Barack Obama addressed retirement savings portability in his final State of the Union address, followed by the inclusion of specific portability initiatives in his 2017 budget.  The reaction from industry players, including DCIIA’s Lew Minsky, was positive.

 

In February, DCIIA’s Leakage Task Force released a compelling research brief on Plan Leakage, highlighting data from the RCH-Boston Research Technologies Mobile Workforce Study.  The DCIIA task force took particular interest in the psychology that drives post-separation behaviors, noting the worrisome trends in the Millennial age cohort, and the need to remove “obstacles” that prevent easy transfer of balances into new plans.

Read More

Topics: Auto Portability, Retirement Savings Portability, Thought Leadership

RCH and EBRI Present Consolidated Testimony on Auto Portability before the ERISA Advisory Council

Posted by Thomas Hawkins on Jun 30, 2016 8:30:00 AM

 

On June 8th, 2016 Retirement Clearinghouse (RCH) and the Employee Benefit Research Institute (EBRI) teamed up to present consolidated testimony to the ERISA Advisory Council on Auto Portability,  the automation of plan-to-plan transfers for small accounts, when participants change jobs. 

 

The testimony (here) was presented jointly by Tom Johnson, RCH’s EVP and Head of Policy Development, and Craig Copeland, EBRI’s Senior Research Associate.  Johnson and Copeland not only addressed the basics of Auto Portability -- what it is, why it’s needed and how it works – but also covered the latest key research findings and EBRI data that are highly-supportive.

 

In his portion of the testimony, Johnson addressed the Auto Portability model and covered the key research initiatives -- building upon each other – that have steadily advanced the case for Auto Portability, including:

 

Read More

Topics: Auto Portability, Retirement Savings Portability, Thought Leadership, ERISA Advisory Council

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