The Potential Impact of 401(k) Loan Default Protection
Research from the Employee Benefit Research Institute shows 401(k) plan loan defaults that occur as a result of job changes or terminations are a significant, but addressable, source of retirement account leakage.
Alight to Offer Retirement Clearinghouse Auto Portability Solution
The RCH Auto Portability service automates the consolidation process for small retirement account cash-outs.
Rollovers Important to Retirement Income Adequacy
EBRI found a significant difference in retirement deficits when comparing the current environment where defined contribution plan participants rollover their assets versus a hypothetical state where workers never rollover their DC assets.
ERISA Industry Stakeholders Analyze Auto-Portability Potential
While enjoying broad support, at this early stage, it is unclear what responsibility a plan sponsor would retain for data security and accurate processing; in addition, auto-portability solutions may be limited by recordkeepers’ willingness to share participants’ personally identifiable information with a third party.
Fiduciary Duties for Auto-Portability Solution Spelled Out by DOL
The DOL has issued an advisory opinion letter in response to a request by Retirement Clearinghouse (RCH), for the Department’s opinion on the status of certain parties as “fiduciaries” as a result of actions undertaken as part of RCH’s Auto-Portability Program.
DOL Asks for Input on Retirement Plan Auto-Portability
The request comes in a notice of proposed exemption from prohibited transactions for Retirement Clearinghouse's auto-portability solution.