Intelligence

Auto Portability and Retirement Savings

Lou Carlozo, a contributor to the American Institute of CPA’s Journal of Accountancy, is writing a story about auto portability and retirement savings. This is a crucial issue, and the idea of taking retirement savings from one job to the next seems like a winner to all concerned. Here we’ll ask your expertise to supply answers *via email* by 9 a.m.Monday CDT, Aug. 21. 1) What are some of the big advantages of taking an inactive participant’s retirement account from a former employer to an active account in a new employer’s plan? Who wins and why? 2) In July, Congress asked the Department of Labor for guidance on auto portability. They stated, ““Retirement plan cash leakage at the time of job change is harmful to workers’ retirement.” What might the status of this DOL request be and what are the major issues here? 3) What might be some useful statistics be in terms of illustrating how important an issue this is? 4) Feel free to highlight your own views of auto portability as an issue. Please feel free to offer *actionable advice* in terms of what finance departments at companies to get employees informed and stay on top of the issue for the good of their companies. Thanks in advance for your help. Those with CPA designations are especially invited to reply. Lou Carlozo, an AICPA contributor, is the managing editor of the Bank Administration Institute in Chicago.