The presentations from
“Auto portability is needed now more than ever to help tens of millions of hardworking Americans improve their retirement-readiness,” said
Auto portability (https://www.rch1.com/auto-portability) is the routine, standardized and automated movement of a retirement plan participant’s 401(k) savings account from their former employer’s plan to an active account in their current employer’s plan. The solution is designed to work within the existing platforms and data flows of the country’s qualified 401(k) plan system. Auto portability was conceived and developed by Retirement Clearinghouse to meet the needs of participants with small account balances that lack access to the portability solutions afforded to larger accounts.
EBRI’s ‘auto portability scenario’ also indicates that:
- If all participants with less than
$5,000(indexed for inflation) in their 401(k) savings accounts would be subject to auto portability when they change jobs, they would have an additional $1.5 trillionin retirement savings (in today’s dollars) when they reach age 65.
- The retirement deficit for Americans between ages 35 and 39 would be reduced by 20% if auto portability would be fully implemented. By way of comparison, the auto IRA programs proposed by the prior
White Houseadministration would result in only 10.6% RSS reduction.
- Americans between ages 25 and 34—across all income brackets—would experience the largest percentage increase in savings at age 65, compared to their older counterparts. The biggest increase in savings would be experienced by workers aged 25 to 34 in the lowest income bracket.
“The simulated effects of auto portability on the ability of Americans to grow their savings for retirement are impressive,” said
Other forum speakers included
About Retirement Clearinghouse
Retirement Clearinghouse’s portability solutions have been proven to cut cash-outs by over 50% and significantly increase average account balances. The firm’s portability solutions include a domestic call center providing specialized assistance designed to enable end-to-end portability and account consolidation; uncashed check services; and the capability to search for lost and missing participants.
Originally established as RolloverSystems in 2001,
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/washington-dc-forum-establishes-auto-portability-as-a-leading-public-policy-initiative-300435104.html