October has been a phenomenal month for auto portability, with plan sponsor adoption surging and industry thought leaders increasingly recognizing the promise of auto portability in finally solving longstanding 401(k) system portability issues.
Auto Portability Adoption Figures Released
On 10/1/25, the Portability Services Network (PSN) released official plan sponsor adoption numbers on their Auto Portability Adoption Tracker page. Featured in PLANSPONSOR, Emily Boyle wrote that "20,997 plan sponsors have elected to adopt automatic portability, as of September 30. The number reflects a 1,225-plan (6.2%) increase from the 19,772 plans reported as of June 30." Boyle's piece extensively quotes Retirement Clearinghouse (RCH) EVP & Chief Revenue Officer Neal Ringquist as well as Empower's Dave Gray from a prior interview.
Industry Thought Leaders Weigh in on The Issue of Portability
Identifying auto portability as a promising solution to longstanding 401(k) portability problems, the following industry thought leaders weighed in on an expanded role for auto portability:
- In a series of articles, American Retirement Association contributors Nevin Adams and Paul Mulholland both critiqued research released 9/30/25, which suggested that there are $2 trillion housed in 31.9 million 'forgotten' 401(k) accounts.
- Adams, in his piece, systematically dismantled both the methodology and conclusions behind the report, while offering EBRI’s auto portability analysis and benefits as sensible research counterpoints to the hyperbole surrounding the analysis of 'forgotten' accounts.
- Mulholland responded that – rather than being "forgotten" these accounts "serve as a proxy for a lack of efficient account portability." In an article hosted by the Plan Sponsor Council of America, Mulholland identified the absence of universal automatic portability as the primary obstacle to consistent retirement saving, taking the position that “universal auto portability can’t come soon enough.”
- Taking my cue from Adams and Mulholland, yours truly evaluated three potential solutions to enable broad portability, zeroing in on an “affirmative consent-based automatic transfer process, applying to all balances not covered by auto portability and supporting IRA rollovers, plan-to-plan roll-ins, as well as those who choose to stay in-plan.”
New Research on Safe Harbor IRA Abuse Points to Primary Role of Auto Portability
New U.S. market entrant PensionBee took a stand against safe harbor IRA abuse, implying that their safe harbor IRA represents a more participant-friendly solution for small balances. 401k Specialist’s Editor-in-Chief Brian Anderson correctly noted that PensionBee’s research does not take into account the “auto portability factor” already in place, which prevents leakage and consolidates these balances back into the 401(k) system.
Anderson’s take was echoed in another piece authored by Mulholland and hosted by PSCA, where RCH’s Neal Ringquist is quoted as stating “reforming safe harbor [IRAs] is inadequate, because the automatic rollover process leads to high participant cash outs,” and “that’s why auto portability is a better solution.”
An Op-Ed by Robert L. Johnson
As if to apply an exclamation point to the month, RCH and PSN Chairman Robert L. Johnson, writing in Pensions & Investments, made a compelling case for three public policy initiatives -- Auto Portability, the Saver’s Match and Trump Accounts – that represent a chance "to reshape the trajectory of retirement savings – and finally confront America’s stubborn wealth gap." Johnson closes with a call to action, urging "public and private sectors to seize this once-in-a-lifetime opportunity to give America’s chronically under-served and under-saved workers generational wealth."
Portability is Winning the Day
Whether it’s expanding plan sponsor adoption of auto portability, more industry thought leaders opining on the importance of expanding retirement savings portability within our 401(k) system, or the public policy significance of preserving and incubating small balance retirement savings, the shift is on.
Portability – specifically, auto portability – is now clearly winning the day.