Enabling the Next Generation of Retirement Plan Infrastructure
Auto portability represents a fundamental evolution in how defined contribution systems operate. Delivered through the Portability Services Network (PSN) and powered by Retirement Clearinghouse (RCH), it transforms fragmented, manual rollover processes into a standardized, automated, digital ecosystem.
For recordkeepers, this is more than a new service – it is a strategic capability that:
- Enhances client value
- Strengthens competitive positioning
- Reduces operational friction
- Advances the long-term health of the retirement system
Here are some important reasons why defined contribution recordkeepers have embraced auto portability.
1. Unlock Network Value Through Industry Collaboration and Reciprocity
Auto portability operates as a recordkeeper-led utility, built on shared infrastructure and interoperability.
- Connects recordkeepers through a nationwide digital hub
- Enables secure, standardized account matching and transfers across platforms
- Scales through participation – each new recordkeeper increases network value
PSN’s collaborative model emphasizes reciprocity and equal participation, aligning competitors around a shared objective: improving retirement outcomes while reducing inefficiencies.
2. Differentiate Your Value Proposition to Plan Sponsors
Recordkeepers are the primary interface for plan sponsors – and auto portability is quickly becoming a high-demand plan feature.
By offering auto portability, you enable your clients to:
- Reduce plan leakage and administrative burden
- Improve participant outcomes and plan metrics
- Enhance plan competitiveness
This positions your platform as forward-looking, fiduciary-aligned, and innovation-driven – a meaningful differentiator in a crowded marketplace.
3. Reduce Operational Friction and Cost Drivers
Fragmented rollover processes create inefficiencies across recordkeeping operations.
Auto portability streamlines operations through:
- Automated, standardized workflows replacing manual processes
- Digital account matching and transfer functionality
- Reduced need for paper-based transactions and follow-ups
The result is lower servicing friction, fewer exception cases, and improved operational scalability across your book of business.
4. Address the Small Account Problem at Scale
Small-balance accounts represent a persistent challenge for recordkeepers:
- High administrative cost relative to asset size
- Increased complexity managing terminated participants
- Elevated risks related to missing participants and uncashed checks
Auto portability directly solves this issue by automatically consolidating small balances into active accounts, reducing the volume of stranded accounts in the system. [rch1.com]
This improves both operational efficiency and overall platform economics.
5. Support Asset Retention and Growth
When participants cash out or roll funds out of the system, recordkeepers lose assets under administration.
Auto portability helps:
- Keep assets invested within the defined contribution ecosystem
- Facilitate plan-to-plan “roll-in” flows instead of leakage
- Increase average account balances over time
By preserving and consolidating assets, recordkeepers can strengthen AUA/AUM stability and growth trajectories.
6. Leverage Scalable, Standardized Technology Integration
Auto portability is built for modern recordkeeping systems:
- Delivered through standardized APIs
- Enables two-way connectivity between recordkeepers and the PSN network
- Supports consistent, repeatable workflows across all participating platforms
This “build once, use many times” infrastructure approach drives long-term efficiency and interoperability across the industry.
7. Accelerate Adoption Through Existing Client Relationships
Auto portability adoption occurs at the plan sponsor level – but is driven by recordkeepers.
- Recordkeepers introduce and implement the feature with existing clients
- Plan sponsors elect adoption, enabling participant inclusion
- Participation expands network reach and effectiveness
This dynamic gives recordkeepers a central role in scaling the solution nationwide, reinforcing their position as system stewards.
8. Align with Regulatory and Industry Momentum
Auto portability is supported by:
- The SECURE 2.0 Act, enabling automated portability transactions
- Broad industry adoption and collaboration among leading recordkeepers
- Growing recognition as a solution to retirement system fragmentation
As adoption accelerates, participation ensures your platform remains aligned with emerging standards and regulatory direction.
A Strategic Opportunity for Recordkeepers
Auto portability is not simply an operational enhancement – it is a foundational capability for the future of defined contribution plans.
By participating in the Portability Services Network, recordkeepers can:
- Modernize the rollover experience
- Eliminate inefficient legacy processes
- Strengthen relationships with plan sponsors
- Retain and grow assets within the system
- Contribute to a more effective and equitable retirement ecosystem
The Bottom Line
Auto portability positions recordkeepers at the center of a more connected, efficient, and participant-focused retirement system.
- Stronger client value
- Lower operational friction
- Improved asset retention
- Scalable, future-ready infrastructure
As the network grows, the advantages compound – for recordkeepers, plan sponsors, participants, and the system as a whole.
Join Us
Auto portability is delivered through the Portability Services Network (PSN).
All defined contribution recordkeepers are encouraged to participate – helping to build a truly interoperable, nationwide retirement ecosystem that moves savings forward with every job change.
