Auto-portability can make a big difference for all plan participants! It helps workers to preserve retirement savings.
A recent Employee Benefit News article describes how Fidelity Investments and Vanguard are partnering with recordkeeper Alight Solutions. The firms are creating a consortium which simplifies transactions among providers when low-dollar 401(k) account balances are transferred upon workers changing employers. Many participant employees with low-dollar balances cash out of retirement accounts when they change jobs. To learn more of how the new consortium should help employees save more for retirement, click here.
Retirement plan account cash-outs are still – but auto-portability is a step in the right direction. This new consortium and auto-portability should create favorable outcomes for both retirement plan sponsors and plan participants.
