Neal Ringquist

CHARLOTTE, NC—December 3, 2024—Portability Services Network (PSN) announces that, in its first year of operation, more than 15,000 plans representing approximately 5 million participants have signed up for auto portability. Robert L. Johnson, Chairman of the Portability Services Network and Retirement Clearinghouse, said, “I heartily applaud the six recordkeepers that launched Portability Services Network for their unwavering commitment to improving the retirement welfare of America’s under-saved and under-served workers. Auto portability was conceived as an innovation to benefit minority and women savers, and it is immensely gratifying to witness its coming to fruition through the hard work of Alight, Vanguard, Fidelity Investments, Empower, TIAA, and Principal® to make auto portability a reality. We encourage more plan sponsors and recordkeepers to join and do their part to assist low-income workers in achieving a financially secure retirement."

New retirement innovations, however compelling they may be, face their biggest challenge in surmounting the glacial pace of change that prevails in the retirement industry, where nothing comes easy.

America’s Leading 401(k) Providers & Retirement Clearinghouse Collaborate to Implement a Nationwide Network for Auto Portability

For quite a while, a compelling case has been made for auto portability based on its positive impact upon America’s 401(k) system, including participants, plan sponsors, recordkeepers and asset managers – all of whom realize significant, quantifiable benefits when small-balance retirement savings are preserved within the 401(k) system.

Following on the heels of three compelling events that occurred in 2021, 401(k) plan sponsors would be well-served by making three 2022 New Year’s resolutions that, if acted upon, could deliver significant benefits for their plans, for their participants and ultimately, for the entire 401(k) ecosystem.
 

In a press release issued 9/21/21, The Vanguard Group (“Vanguard”) announced it has engaged with Retirement Clearinghouse (RCH) to introduce the RCH Auto Portability program to their defined contribution plan sponsor clients in mid-2022.

In January, Alight Solutions released 2020 Hot Topics in Retirement & Financial Wellbeing, a survey of 130 plan sponsors employing 5.5 million workers and highlighting key trends among plan sponsors, including expanding financial wellbeing programs, increasing efforts to help participants bridge the gap between working and retiring, and strengthening programs to locate missing participants.

On Wednesday, 11/4/20 the Broadcast Retirement Network’s Jeff Snyder interviewed Retirement Clearinghouse (RCH) President & CEO Spencer Williams and Alight Solutions’ Vice President & Head of Research Rob Austin to address the 401(k) system’s small account problem – where high levels of cashout leakage in small balance segments perennially robs millions of participants of a timely or comfortable retirement.

In a press release issued Tuesday, July 14th, Retirement Clearinghouse (RCH) announced that Alight Solutions will lead the nationwide launch of the RCH Auto Portability program. 

Increasingly, 401(k) plans have become more-and-more “institutionalized” – reflected by an increased level of sophistication in investment options, coupled with a downward trend in fees.