Retirement Clearinghouse in the News

Find news articles referencing RCH and our services, including Auto Portability


Mar
25
2024

Changes for Small-Balance Savers

In the March-April 2024 edition of PLANSPONSOR Magazine, Remy Samuels covers developments surrounding small-balance accounts, including the 12/29/23 increase of the mandatory distribution threshold from $5,000 to $7,000, the recent announcement by the Portability Services Network (PSN) of live operations, and the release by Retirement Clearinghouse (RCH) of an updated version of its Auto Portability Simulation (APS). Samuels briefs her readers on all of these developments, and offers a summary of key results from RCH's new APS model.

*Subscription Required

Mar
20
2024

Why You Should Clean Up Those Old 401(k)s

Morningstar's Mark Miller examines the issue of 'old' or abandoned 401(k) accounts and concludes that "adopting good 401(k) hygiene" is key to success as workers change jobs, and consolidation is an effective approach that delivers broad benefits. When it comes to 401(k) automation, Miller turns to RCH EVP Neal Ringquist, who gives Miller a primer on auto portability, as delivered by the Portability Services Network (PSN). Miller quotes Ringquist on the benefits of auto portability -- particularly to under-saved demographic segments -- as well as the impact of consolidation in helping participants more effectively manage their retirement savings.

Feb
28
2024

What to Do With Your 401(k) When You Leave Your Job

In a guest piece for Kiplinger's Personal Finance, RCH & PSN president and CEO Spencer Williams advises readers on the best course of action for keeping track of, and preserving retirement savings following a job change. First and foremost, Williams counsels participants to avoid cashing out, a behavior which happens all too frequently and "can make a big dent in an American’s retirement prospects." Instead of cashing out, Williams advises readers to mobilize their retirement savings "and consolidat[e] them in the active accounts in their new employers’ plans." Finally, Williams notes the promising developments within the Portability Services Network (PSN), which went live on 11/1/23, and which automates plan-to-plan consolidation for balances under $7,000.

Feb
20
2024

401(k) Plans: Additional Federal Actions Would Help Participants Track and Consolidate Their Retirement Savings

On 2/20/24, the Government Accountability Office (GAO) released a paper entitled: 401(k) Plans: Additional Federal Actions Would Help Participants Track and Consolidate Their Retirement Savings. The paper's organizing principle is the difficulty that many Americans have in keeping track of their retirement savings, and posits that better information on terminated accounts (via a "dashboard" style interface), paired with the ability to easily consolidate all balances via a government-operated consolidation mechanism could deliver benefits to retirement savers. Curiously, the GAO report avoids mentioning the problem of cashout leakage, but does make references to auto portability and the efforts of the Portability Services Network (PSN) for balances under $7,000. The GAO's report was subsequently covered by InvestmentNews and Pensions & Investments.

Feb
19
2024

A More Enlightened Approach to Uncashed Distribution Checks

No retirement plan sponsor likes the idea of dealing with uncashed distribution checks, nor do they wish to draw unwanted regulatory attention or to become embroiled in costly litigation. Unfortunately, many plan sponsors place themselves in precisely that spot, becoming unnecessarily over-burdened with unresolved uncashed checks, while inviting unwanted regulatory scrutiny and/or legal challenges by having flawed uncashed check policies. In his 2/19/24 opinion piece in 401k Specialist Magazine, RCH's Tom Hawkins lays out a "more-enlightened" approach to the problem of uncashed distribution checks, seeking to minimize their numbers, while simultaneously steering clear of the “red flags” that could land them in hot water.

Feb
12
2024

What’s Around the Corner?

Writing in the 'What's Around the Corner?' feature in the Jan-Feb 2024 magazine edition of PLANSPONSOR, Ed McCarthy asks industry experts where we are with key events and trends, and what's likely to emerge in 2024. McCarthy turns to RCH EVP Neal Ringquist for his views, and Ringquist delivers an update on auto portability, reporting progress in 2023 within the Portability Services Network (PSN), with Alight, Fidelity Investments and Vanguard completing their implementations and focusing on onboarding clients. Looking ahead to 2024, Ringquist notes that PSN's focus will be on "expanding the network of plans and recordkeepers" while achieving operational status for Empower, Principal Financial Group and TIAA. Finally, Ringquist notes the impact of "both the auto-portability provision and the mandatory distribution-limit increase to $7,000 under SECURE 2.0" which will lead to plan sponsor reviews of the new features.

*Subscription required

Feb
10
2024

Auto Portability: A Game Changer in Retirement Services

BNN Breaking correspondent Muhammed Jawad writes a highly-supportive piece on auto portability, which he describes as "a digital solution launched by Retirement Clearinghouse." Jawad adds that auto portability "promises to revolutionize the retirement services industry by automating the transfer of small retirement accounts" and will "reduce cash-out leakage, preserve trillions in the retirement system, particularly benefit minority communities....[and] significantly improve the retirement prospects of countless Americans." Jawad notes the recent findings from RCH's Auto Portability Simulation (APS) model, writing that: "nationwide adoption of auto portability is estimated to reduce overall cash-out leakage from the U.S. retirement system by a staggering $355 billion and preserve an additional $1.6 trillion in savings."

Feb
10
2024

Policy changes look to reduce 401(k) plan ‘leakage’

CNBC Personal Finance Reporter Greg Iacurci takes a comprehensive look at the problem of 401(k) cashout leakage, as well as its most promising solution -- auto portability, as delivered by the Portability Services Network (PSN). In his analysis, Iacurci turns to industry experts, including RCH & PSN president & CEO Spencer Williams, EBRI's Craig Copeland and other researchers and academics. Iacurci quotes Williams as stating that auto portability is essentially a “very large exchange mechanism” within the 401(k) industry, and that the feature has promise in addressing the cashout leakage problem. Iacurci adds: "at 70% market coverage, auto portability is expected to reconnect about 3 million people a year with 401(k) accounts they left behind upon job change."

Also featured in SkyNews, The Adviser Magazine, USA Today News, and at least 30 other media outlets

Page: