While it’s been long accepted that expanding retirement plan coverage can significantly impact aggregate savings shortfalls, recent research from EBRI further suggests that an auto portability initiative that reduces plan leakage can significantly build on these efforts.
Join EBRI to hear the latest research on the potential benefits of using auto portability for handling 401(k) accounts upon termination of employment. In the recent Issue Brief, “The Impact of Auto Portability on Preserving Retirement Savings Currently Lost to 401(k) Cashout Leakage,” author Jack VanDerhei examined automatically taking a participant’s account from a former employer’s retirement plan and combining it with their active account in a new employer’s plan with the intention of keeping the defined contribution (DC) assets in the retirement system and — in theory — reducing leakage from cashouts upon employment termination. Cashouts are the most significant form of leakage from DC plans, especially among workers with low plan balances. Michael Kreps (Principal, Groom Law Group) will discuss legal issues related to auto portability and, in particular, recent guidance from the Department of Labor.
This webinar will explore use of EBRI’s Retirement Security Projection Model,® which was used to project that auto portability would produce significant decreases in retirement deficits for specific demographic segments, along with the benefits of both full and partial auto portability and more.
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