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Consolidation Corner Blog

Consolidation Corner is the Retirement Clearinghouse (RCH) blog, and features the latest articles and bylines from our executives, addressing important retirement savings portability topics.


Sep
16
2020

Automated 401(k) Portability: An Idea Whose Time Has Come

Nothing is More PowerfulFrench author and poet Victor Hugo observed: “nothing is more powerful than an idea whose time has come.”

In theory at least, plan-to-plan portability has always been a feature of our 401(k) system. In practice, it’s been completely impractical for all but a hardy few. The idea of automating 401(k) portability was the holy grail, a ‘moonshot’ generally believed to be impossible…until now.

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Sep
02
2020

401(k) Plan Terminations Could Produce New Wave of Cashout Leakage

401k_Plans_Cashout_LeakageDuring the COVID-19 crisis, massive job losses combined with economic hardship and relaxed restrictions on withdrawals have created the conditions for a perfect storm of 401(k) cashout leakage. Unfortunately, this storm may soon gain more strength, when a surge in end-of-year 401(k) plan terminations could trigger a new flood of cashouts, as participants are forced to leave their former employers’ plans.

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Jan
29
2020

The New Age of DC Plan Portability

The New AgeA recent survey of defined contribution (DC) plan sponsors found that interest in retaining assets for retirement is on the rise. That finding, paired with certain provisions of the SECURE Act of 2019, suggests that DC plans are on a path to becoming “decumulation vehicles” for American retirees. While these developments are encouraging, persistently high levels of cashout leakage, increasing missing participants and other factors produce understandable pessimism regarding the future of DC plans. 


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Oct
21
2019

Safe-Harbor IRAs are Supposed to be Temporary

Employee Benefit News LogoFifteen years ago, when safe-harbor IRAs were first proposed as a destination for small, stranded 401(k) accounts that can be automatically rolled out of plans, then-U.S. Assistant Secretary of Labor Ann L. Combs spelled out what these investment vehicles were supposed to accomplish.

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Sep
27
2019

The Auto Portability Imperative

CashOutLeakageBridge
Cashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement. Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it.
 
The fifth of a five-part series, this article addresses auto portability, a solution that not only makes sound business sense, but delivers a positive societal impact for the corporations adopting it.
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Sep
16
2019

The Most Promising Policies to Reduce 401(k) Cashout Leakage

CashOutLeakageBridgeCashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement. Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it.  The fourth of a five-part series, this article addresses policies with the most promise to reduce the 401(k) cashout leakage problem.
 
 
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Aug
21
2019

The Magnitude of the 401(k) Cashout Leakage Problem

Cashout LeakageCashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement.  Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it.  The third of a five-part series, this article addresses the magnitude of the 401(k) cashout leakage problem.

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Jul
26
2019

The Demographics of 401(k) Cashout Leakage

Cashout LeakageCashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement.  Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it.

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Jun
28
2019

Spotlight on Cashout Leakage: The Fundamentals

Cashout_Leakage_DamCashout leakage, a long-standing problem in America’s defined contribution system, is a silent crisis that unnecessarily robs millions of Americans of a comfortable, timely or secure retirement.  Plagued by misunderstanding and neglect, it’s vitally important to understand the problem and to take decisive action to curb it.

The first of a five-part series, this article addresses the fundamentals of cashout leakage.

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May
30
2019

How Auto Portability Serves Participants’ Best Interests: Part 5

AP_definition_best_interestsIn this series, I identify five key reasons why an auto portability program serves the best interests of plan participants.


Previously:

In part 5, my final installment of the series, I explain how auto portability can mitigate retirement-related cybersecurity risks.

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