RCH’s expanded suite of services addresses a significant gap in workplace-based retirement savings programs that results in job changers stranding their accounts in their old defined contribution and defined benefit plans; attempting the confusing task of rolling over their savings by themselves; or cashing out of the retirement system altogether, incurring penalties and taxes that severely compromise their retirement saving efforts.
RCH provides personalized intervention from start to finish that cuts cashouts and stranded accounts among job-changing participants, including those with low account balances who are at greatest risk of cashing out.
“This new strategy will result in a dynamic change in the retirement industry and we believe will be a solution for millions of 401(k) account holders to better manage their retirement assets,” said Johnson. “I am very excited that Retirement Clearinghouse CEO J. Spencer Williams has authored this unique mission for the company and believe his leadership will guide the future success of Retirement Clearinghouse.”
RCH’s services include:
- Assisted Roll-In Service: Sponsors help new hires consolidate their savings into their new retirement accounts, increasing plan assets and average account balances, which can lower plan costs. Participants manage their retirement savings more easily and save money by consolidating their accounts and eliminating redundant account fees.
- Automatic Rollover (ARO) Plus: A patent-pending service that includes a multivendor, choice-oriented Safe Harbor and rollover individual retirement account (IRA) platform and proactively and automatically consolidates participants’ Safe Harbor accounts with their new employer’s defined contribution (DC) plan. The service has no minimum balance requirements and an enhanced address search and verification service, eliminating lost and missing participants and the problem of uncashed checks.
- Assisted Rollover Service: Sponsors reduce the number and associated costs and risks of terminated participant accounts in their defined contribution plans with a voluntary program that combines comprehensive support with exceptional choice.
Retirement Clearinghouse also offers specialty services for plan sponsors who need to help retirement plan participants as a result of a merger, acquisition or plan termination; to locate missing participants; and to solve uncashed check problems.
The company works with a sponsor’s existing recordkeeper and conforms to retirement plan rules. Retirement Clearinghouse services are available to both defined contribution and defined benefit (DB) plan sponsors. For more information on Retirement Clearinghouse, visit www.RCH1.com.