In a further sign of auto-portability solutions gaining steam, benefits-solutions provider Millennium Trust Company has officially kicked off testing of its new open portability network, the firm announced July 7.
Open to the industry, including other portability networks, the new network is designed to connect with all types of providers who want to make the movement of funds between retirement accounts faster and easier, helping to reduce unnecessary retirement savings leakage, increasing access to savings and investment options, and improving long-term financial outcomes, according to the firm’s announcement.
First unveiled in April, Millennium Trust's new open portability network seeks to eliminate the hassle of moving money within the retirement system by digitizing the transfer process. The firm’s dual solution enables both auto portability and active portability within one network, enhancing the company's existing portability solution and allowing clients to offer auto-portability services.
"We're excited to begin testing of our open portability network with several valued partners and believe that our approach of 'one network, two solutions' will create incredible value for the retirement industry," notes Erik Beck, Millennium Trust chief commercial officer.
The firm notes that portability has always been part of its automatic rollover solution and gives individuals the choice to decide what to do with their retirement savings. Active portability through the new network will allow individuals to digitally transfer their funds simply and quickly between retirement accounts.
“This network will reduce paperwork, manual checks, phone calls, and general frustration with the process,” explains Millennium Trust CEO Dan Laszlo. “We're eliminating friction, which is good for consumers and the industry. It lowers costs for our institutional clients, gives people better control of their retirement funds, and increases customer satisfaction—all clear benefits of participation.”
The firm’s open portability network also enables auto portability as an optional add-on to its existing auto-rollover solution to help individuals who aren't actively engaged with their retirement savings. The network will be ready to enable auto portability well ahead of Jan. 1, 2024, when auto portability may first be offered under the SECURE 2.0 Act, the announcement further notes.
"We'll be ready for any partner that wants auto portability on Day 1," adds Beck.
Millennium Trust notes that these efforts are just one aspect of its more than $30 million commitment to combat retirement savings leakage. The company also plans to add recordkeepers, automatic rollover providers, other portability networks, and other industry stakeholders interested in improving long-term financial outcomes to the network soon.
To learn more, visit: https://www1.mtrustcompany.com/portability
Meanwhile, this news comes on the heels of the Principal Financial Group announcing that it will join the Portability Services Network (PSN) alongside TIAA, Empower, Fidelity, Vanguard, and Alight at the Retirement Clearinghouse-backed initiative.
