Regulatory Roundup: Auto Portability
In this video episode of Fidelity's Regulatory Roundup, show host Tre Hearn and guest Katie Hutchinson, VP, Defined Contribution Product Platforms, dive into Auto Portability -- the game-changing solution that helps workers by simplifying the rollover process of their retirement savings when switching jobs. Topics covered in the video include:
- 00:18 What happens when a worker changes jobs and doesn't rollover their retirement savings to their new employer?
- 01:03 Which workers does this affect most?
- 01:17 Does the SECURE 2.0 Act provide a solution for workers moving jobs?
- 01:42 The Portability Services Network and Auto Portability
- 03:00 How do employers benefit from joining the Portability Services Network?
How Empower Is Helping To Strengthen Retirement Plan Portability
Financial advisor and private wealth guru Russ Alan Prince interviews Empower's Dave Gray, executive vice president of the firm's Enterprise Solutions group and a founding board member of the Portability Services Network (PSN). Prince and Gray engage in a wide-ranging discussion concerning the key role that is being played by auto portability, as delivered by PSN. In their discussion, Gray is an unabashed advocate of auto portability, and notes that "over 11,000 of the plans we work with have signed up" for the innovative service already, and adds that "as more time goes by, and due diligence is completed, we are seeing more and more large plan sponsors become comfortable enough as fiduciaries to add the auto portability service to their plans."
Retirement Planning In 2025: What’s On People’s Minds
Contributor Jamie Hopkins takes stock of the state of retirement planning in 2025, noting the "shaky" sentiment amongst retirement savers, while offering those savers four "smart moves" to consider as they continue their retirement journey. Included in Hopkins' recommendations is wise advice to "consolidate your accounts" so that "changing jobs over the years [does not] leave you with scattered retirement accounts." To support consolidation, Hopkins observes that "new services like 'Auto Portability' are making this even simpler for small balances."
Here's why an alarming number of workers cash out 401(k) plans
Writing in USA Today, journalist Daniel de Vise addresses the 401(k) system's cashout leakage problem, turning to a variety of industry experts, including representatives from Vanguard and Fidelity, who address the magnitude of the problem as well as many of the systemic and behavioral issues that drive cashout decisions. Pivoting off a quote from AARP's David John, de Vise closes his piece by focusing on auto portability, and cites the Portability Services Network consortium, where "most big retirement-plan providers participate in the [auto portability] effort."
Lost 401(k)s are costing employees: How employers can help with rollovers
EBN's Lyn Cavanaugh, interviewing Mindy Yu, Director of Investing, Betterment at Work, discuss the topic of "lost 401(k)s" and how employers can assist former employees with moving their retirement savings forward. Addressing the topic of auto portability, Wu states that "employers can take a more proactive role by....partnering with platforms that support...auto-portability...[to] reduce the chance that savings go missing in the first place."
Improving Retention By Supporting 401(k) Account Consolidation
Writing in Wealth Solutions Report, Spencer Williams -- the CEO of both the Portability Services Network and Retirement Clearinghouse (RCH) -- characterizes the "opportunity for advisors" represented by auto portability, which improves the retention of assets in the 401(k) system. Aside from the benefits enjoyed by participants who preserve their savings, auto portability, writes Williams, "creates two-way flows for participants’ savings" and in so doing, allows "more assets to flow into the plans sponsored by advisors’ 401(k) clients through automated roll-in contributions."
Explaining fiduciary obligations for 401(k) consolidation
In his latest opinion piece in Employee Benefit News, RCH Founder, President & CEO Spencer Williams discusses the fiduciary obligations of auto portability, "the process powering 401(k) account consolidation" and seeks to assuage lingering fiduciary concerns associated with "proposed regulations....issued on January 29, 2024 by the U.S. Department of Labor (DOL)." Williams contends that the DOL's regulations do not override fiduciary responsibilities as set forth in the DOL's 2018 Advisory Opinion, or contained in "the regulatory framework for automated portability transactions already in the SECURE Act 2.0."
Why Preserving Small Balances Matters (and How Auto Portability Helps)
The preservation of small-balance 401(k) accounts – particularly those under $7,000 and subject to 401(k) plans’ automatic rollover provisions – represents an important challenge for America’s retirement system. In his 7/11/25 opinion piece in 401k Specialist, RCH's Tom Hawkins examines four compelling arguments for the importance of preserving small balances, while demonstrating how auto portability, as delivered by the Portability Services Network (PSN), can help achieve this goal.
