RolloverSystems Rebrands to Retirement ClearinghouseSM, Expands Services Helping Employers Solve Costly Problems Related To 9 Million Employees Entering And Exiting 401(k) Plans Annually
Charlotte, NC, February 26, 2013 /PRNewswire/ — Robert L. Johnson, chairman of the board and majority owner of RolloverSystems, LLC, today announced the company has rebranded to Retirement Clearinghouse, LLC (RCH) and is expanding its innovative suite of services that enable 401(k) plan sponsors to better address the costs, risks, complications — and $74 billion in ill-advised cashouts – that result from 9 million employees entering and exiting retirement plans each year.
RCH’s expanded suite of services addresses a significant gap in workplace-based retirement savings programs that results in job changers stranding their accounts in their old defined contribution and defined benefit plans; attempting the confusing task of rolling over their savings by themselves; or — worse — cashing out of the retirement system altogether, incurring penalties and taxes that severely compromise their retirement saving efforts.
RCH provides personalized intervention from start to finish that cuts cashouts and stranded accounts among job-changing participants, including those with low account balances who are at greatest risk of cashing out. The retirement system would retain $1 trillion over 10 years by cutting cashouts in half, according to Employee Benefit Research Institute estimates. Reducing the number of stranded accounts would save an estimated $50 billion in plan expenses over 10 years.
“This new strategy will result in a dynamic change in the retirement industry and we believe will be a solution for millions of 401(k) account holders to better manage their retirement assets,” said Johnson. “I am very excited that Retirement Clearinghouse CEO J. Spencer Williams has authored this unique mission for the company and believe his leadership will guide the future success of Retirement Clearinghouse.”
“Our services let retirement plan sponsors help new hires, existing participants, and those who are exiting the plan to consolidate their 401(k) and pension plan savings and to do so with personalized guidance that ensures successful completion of the process,” said Williams. “We’re not about asset gathering. We’re a brand-neutral transaction engine that helps participants move and consolidate savings, resulting in better outcomes for sponsors, the system itself, and – most importantly – the participants who are working hard to save for retirement.”
Retirement Clearinghouse’s approach combines innovative systems and processes with personalized, start-to-finish support from its DecisionDeskSM counselors. RCH’s services include:
- Assisted Roll-In Service:
- Sponsors help new hires consolidate their savings into their new retirement accounts, increasing plan assets and average account balances, which can lower plan costs.
- Participants manage their 401(k) savings more easily and save money by consolidating their accounts and eliminating redundant 401(k) account fees.
- Piloted at one of the country’s largest employers in 2011, RCH’s Assisted Roll-In Service increased the number and dollar amount of roll-ins by more than 200 percent each, earning recognition for innovation by Pensions & Investments and the Defined Contribution Institutional Investment Association.
- Automatic Rollover (ARO) Plus:
- A patent-pending service that includes a multi-vendor, choice-oriented Safe Harbor and rollover IRA platform and — in an industry first – proactively and automatically consolidates participants’ Safe Harbor accounts with their new employer’s 401(k) account.
- The service has no minimum balance requirements and an enhanced address search and verification service, eliminating lost and missing participants and the problem of uncashed checks.
- RCH’s support has been proven to reduce the high rate of 401(k) cashouts that is prevalent among small-balance participants.
- Assisted Rollover Service:
- Sponsors reduce the number and associated costs and risks of terminated participant accounts in their 401(k) plans with a voluntary program that combines comprehensive support with exceptional choice.
- The service meets each separating participant’s individual distribution needs, whether consolidating savings into:
- a new employer-sponsored plan;
- an existing IRA;
- an income annuity for those nearing retirement; or
- a new, low-cost IRA.
Retirement Clearinghouse also offers specialty services for plan sponsors who need:
- to help retirement plan participants as a result of a merger, acquisition or plan termination;
- to locate missing participants; and
- to solve uncashed check problems.
As an independent company, Retirement Clearinghouse provides these services while remaining brand-neutral, balance-blind, and unbiased in their recommendations to both sponsors and participants.
Retirement Clearinghouse’s services require no major retirement plan changes. The company works with a sponsor’s existing recordkeeper and conforms to retirement plan rules. Moreover, Retirement Clearinghouse services are available to both defined contribution and defined benefit plan sponsors.
For more information on Retirement Clearinghouse, an RLJ company, visit www.RCH1.com.
Retirement Clearinghouse Media Contacts:
The RLJ Companies Media Contact:
Traci Otey Blunt, The RLJ Companies
About Retirement Clearinghouse
Retirement Clearinghouse (RCH) is the leading specialist in employee retirement transition (job changer) services, with best practices designed to improve outcomes for retirement plan sponsors, participants, and providers. RCH’s programs increase plan assets, improve plan efficiency, lower plan costs and reduce fiduciary risk while providing participants with one-on-one, beginning-to-end assistance in the complex process of consolidating and managing their workplace retirement savings accounts. In keeping with its commitment to ease of use, RCH works with sponsor’s existing recordkeepers and conforms to existing plan rules, requiring no major plan changes. RCH has streamlined more than 10,000 sponsor plans, helped more than 625,000 participants, guided billions of dollars in transactions, and reduced cashouts. RCH’s experienced management team has a long record of thought leadership and innovation in the retirement savings industry. An RLJ company, RCH is based in Charlotte, NC, and is on the web at www.rch1.com.
About The RLJ Companies
The RLJ Companies, founded by Robert L. Johnson, is an innovative business network that provides strategic investments in a diverse portfolio of companies. Within The RLJ Companies portfolio, Johnson owns or holds interests in businesses operating in hotel real estate investment; private equity; financial services; asset management; insurance services; automobile dealerships; sports and entertainment; and video lottery terminal (VLT) gaming. The RLJ Companies is headquartered in Bethesda, MD, with affiliate operations in Charlotte, NC; Little Rock, AR; Los Angeles, CA; San Juan, PR; and Monrovia, Liberia. Prior to founding The RLJ Companies, Johnson was founder and chairman of Black Entertainment Television (BET). Visit www.rljcompanies.com.