Consolidation Corner

The America250 celebrations remind all of us how much we have to be thankful for, as Americans who value liberty and all that our previous generations have sacrificed to maintain our freedoms. When the Continental Congress ratified the Declaration of Independence 250 years ago on July 4, 1776, its members were creating a nation which was something unique in the annals of history – a republic by the people, for the people. Thomas Jefferson memorably wrote in the Declaration of Independence that these unalienable rights included “Life, Liberty and the pursuit of Happiness.”

Defined contribution plan sponsors have long faced the persistent challenge of locating missing participants – individuals who have become disconnected from their retirement savings over time.

FACT: Retirement savings portability helps everyone, hurts no one – and with no cost to plan sponsors to implement – it’s the equivalent of a “free lunch” for the retirement savings ecosystem.

Need convincing?

Consider the benefits of retirement savings portability to:

Are you a plan sponsor and want some good reasons why you should adopt auto portability?

Here are seven:

For decades, America’s retirement system has struggled with a fundamental mismatch: a system designed around stable, long-term employment serves a workforce defined by mobility and frequent job changes. The result is a fragmented, “leaky” system – one that allows trillions of dollars in retirement savings to slip away through cashouts, inefficiencies, and left-behind accounts. 

Since late 2023, when auto portability – as delivered via the Portability Services Network (PSN) – became operational, the new plan feature has been steadily working its way from an innovative concept into a core best practice for addressing the chronic problem of retirement plan cashout leakage.

April 22 marks the 56th Earth Day, a time to reflect on our relationship with the environment and the progress made in reducing waste through recycling. While society has made strides in curbing physical waste, a similar problem persists in the U.S. retirement system: the inefficient handling of 401(k) accounts when employees change jobs.

As the Saver’s Match Program must soon transition from legislative concept to operational reality, one question looms larger than any other:

​​How will the Program operate at scale, in the real world, across tens of millions of people annually, thousands of institutions, and billions of federal dollars?

On March 31, 2026 I had the opportunity to attend the SPARK Champions for Financial Literacy event in Washington, DC, kicking off Financial Literacy Month, which takes place in April.

With more than half of 2026 now behind us, we are just months away from the start of 2027 – the first year when the Saver’s Match replaces the Saver’s Credit as a benefit for eligible taxpayers.