What is Auto Portability?
Auto portability is the automatic movement of a terminated participant’s small balance account (under $5,000, increasing to $7,000 effective 12/31/23) from a former employer’s retirement plan to an active account at a new employer’s plan, when a participant changes jobs. Auto portability, delivered through the Portability Services Network and PSN member recordkeepers, makes small-balance, plan-to-plan portability a new default plan feature. Read More
Why is Auto Portability Needed?
Auto portability dramatically reduces cashout leakage for small-balance retirement savers. Cashout leakage threatens all Americans, but disproportionately affects minorities, lower-income and younger segments of the population, which have historically under-saved and under-served by the defined contribution system. Auto portability changes these essential dynamics, preserving more retirement savings for those who need them most. Read More
How Does Auto Portability Work?
Auto portability is powered by financial technology, but also works according to well-defined processes, which incorporate participant notices, electronic records matching, participant consent and an automatic roll-in process. Read More
Supporting Research
The foundation for auto portability is built upon industry research conducted by a wide variety of parties over almost ten years, all pointing to the benefits of moving retirement savings forward. Read More
