Retirement Clearinghouse

#SaversMatch: A ‘Force Multiplier’ in the Battle to Improve #Retirement Readiness Key findings from new research indicates that the Saver’s Match Program holds strong potential to be a “force multiplier” in the battle to help America’s under-saved and under-served workers improve their prospects for a secure retirement in at least three measurable ways. These include stimulating more savings through federal matching contributions, incentivizing more contributions from existing savers, and boosting participation in the retirement system from non-savers. Read the full Press Release: https://bit.ly/3Je1XEY

The Scramble to Make the Saver’s Match Work PLANADVISER's Alex Ortolani reports on the increasing attention being paid to the #SaversMatch program as the 2027 target date for the measure's implementation draws closer. Industry groups such as the Pew Charitable Trusts and the Bipartisan Policy Center, acknowledge there could be issues for the program in addressing "the plumbing with recordkeepers." Ortolani turns to RCH CEO Spencer Williams, who indicates that the Saver's Match program could benefit from #AutoPortability technology being deployed by the Portability Services Network, stating that the "utility can be modestly tweaked so the U.S. Treasury can....identify a taxpayer, select a dollar amount and get the money into their plan. At the end of the day, you have to move the money to make it work.” #retirement #401k Read the full article: https://hubs.ly/Q02HRfRP0

#AutoPortability Adoption Picks Up Steam RCH EVP Neal Ringquist examines recent developments surrounding auto portability, which is now in the early stages of plan sponsor adoption. Ringquist writes that plan sponsor adoption “has begun to pick up steam” and shares results that “over 3,300 plans – representing almost 1.4 million active participants” have adopted auto portability via their PSN-affiliated recordkeepers. Ringquist credits PSN recordkeepers with leading the way, while citing a recent article about the Unum Group that provided an innovative plan sponsor’s perspective on the new feature. Looking ahead, Ringquist envisions auto portability becoming a “must-have” feature for sponsors and recordkeepers and expects “more adoption ahead – a lot more.” Read the full article: https://hubs.ly/Q02H1nHZ0

Upcoming Trends in Plan Design: From the Perspective of a Retiring Plan Sponsor PLANSPONSOR's Remy Samuels reflects on the pending retirement of Carl Gagnon, assistant vice president of global financial well-being and #retirement programs at Unum Group, and "[k]nown for innovative plan design ideas and offering a wide swath of benefits to his employees." In recounting his legacy of innovation, Samuels notes that Unum Group has elected to adopt auto portability, as delivered by the Portability Services Group. "We think that’s going to be extremely attractive to our new hires,” Gagnon says. “We’re trying to make it easier for our employees to consolidate their assets into one plan and into one company so they can manage it all.” #401k #CSR #DEI #AutoPortability Read the full article: https://bit.ly/3xxFDnR

The Risky Business of Cashing Out Plan Balances Below $1,000 Writing in the RCH Consolidation Corner blog, Tom Hawkins examines the “risky business” of automatically cashing out sub-$1,000 balances of separated participants. Hawkins writes that the practice, “may seem like an expedient approach to rid a plan of small balances” but “carries undesirable side effects for both the plan and for its participants” including uncashed distribution checks and unnecessary cashout leakage. The best approach, continues Hawkins, is to “adopt auto portability, which delivers all of the benefits but none of the flaws of old-school automatic rollovers.” #CSR #DEI #401k #retirement #AutoPortability Read the full article: https://bit.ly/3XNtnKt

SECURE 2.0’s Saver’s Match: The Promise and The Challenges Writing in 401(k) Specialist Magazine, RCH's Tom Hawkins takes stock of the #SaversMatch program, slated to begin operation with the 2027 tax year. While research is still ongoing, Hawkins notes that the picture being revealed is one of massive potential to increase retirement savings and to help close the minority wealth gap. These benefits may not come easily, given the sheer size of the population affected by the Saver’s Match, and the challenges that the program could face in getting up-to-speed. At the Annual iOme Challenge Forum, held on 6/20/24 by the Women's Institute For A Secure Retirement (WISER), RCH & PSN President and CEO Spencer Williams, along with Morningstar's Jack VanDerhei, outlined both the promise and the challenges represented by the Saver’s Match. Read the full article: https://bit.ly/4cpFMsr

What Optional SECURE 2.0 Provisions Are Plan Sponsors Most Likely to Adopt? Napa Net's Ted Godbout reports on the results of a new plan sponsor survey, conducted by Fidelity Investments "to gain a better understanding of what optional provisions of the SECURE 2.0 Act that plan sponsors are most likely to adopt." The survey found "high interest" in #AutoPortability, a service which they expect to be a "standard offering." Godbout also writes that, "for larger plans, withdrawals for emergency expenses was replaced by auto-portability by corporate plan sponsors" and that "plan sponsors in finance and manufacturing both ranked auto-portability as a top option." #retirement #401k #DEI #CSR Read the full article: https://hubs.ly/Q02DBmJc0

Talking Points: How to SECURE 'Better' #Retirements Writing in Napa Net, Nevin Adams draws attention to the Saver's Match provisions of SECURE 2.0, and finds some promising information contained in the projections supplied by Morningstar's Jack VanDerhei, and survey results recently published by Boston Research Technologies (BRT) and Retirement Clearinghouse (RCH). Adams notes that Morningstar's research predicts outsized #SaversMatch benefits will accrue to minorities -- but particularly to Black and Hispanic females -- while the BRT-RCH survey estimates that the Saver's Match could drive increased levels of saving among existing participants, while simultaneously increasing the participation levels of non-savers. Read the full article: https://hubs.ly/Q02DkVNZ0

Taking Stock of the Saver’s Match: The Promise and The Challenges Slated to begin operation with the 2027 tax year, the #SaversMatch program is coming more sharply into focus. While research is still ongoing, the picture being revealed is one of massive potential to increase retirement savings and to help close the minority wealth gap. These benefits may not come easily, given the sheer size of the population affected by the Saver’s Match, and the challenges that the program could face in getting up-to-speed. At the Annual iOme Challenge Forum, held on 6/20/24 by the Women's Institute For A Secure Retirement (WISER), RCH & PSN President and CEO Spencer Williams, along with Morningstar's Jack VanDerhei, took stock of both the promise and the challenges represented by the Saver’s Match program. Read the full article: https://hubs.ly/Q02CfVVX0

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