Alight Solutions has announced that it will make Retirement Clearinghouse’s Auto Portability program available to its client base of 185 DC plan sponsors serving nearly five million employees at the end of this year.
The program is designed to make it easier for U.S. workers to move 401(k) assets from one employer plan to another, and thus reduce premature cash-outs, preserving retirement savings, and improving financial wellbeing.
Alight's clients who are supportive of auto portability include Cummins, Huntington Ingalls and UPMC, among others, according to a press release.
The RCH Auto Portability service, which automates the consolidation process for small accounts, has been in operation on a pilot basis since 2017. On behalf of a large plan sponsor in the health services sector, RCH completed the first-ever fully automated, end-to-end transfer of retirement savings from a safe-harbor IRA into a worker’s active account in July 2017. Since that time, more than 1,600 workers have consented to have their former-employer plan accounts transferred into their current employer’s plan.