A partnership between the Alliance Benefit Group of Illinois (ABGI) and Retirement Clearinghouse LLC will provide better portability for retirement plan participants the two companies serve.
ABGI's specialty is record-keeping and third-party administration for employer-sponsored retirement plans, while Retirement Clearinghouse's focus is on portability services such as identifying, finding, moving and consolidating retirement savings accounts - services ABGI's customers will now receive free of charge.
"Once we identify a participant who is interested in this offering, Retirement Clearinghouse will work directly with them to seamlessly move retirement assets from an inactive plan, IRA or both to their current plan under ABGI - benefiting participants, our plan clients and the retirement system as a whole," ABGI President and CEO John Blossom Jr. said.
Cash-outs lead to a loss of $74 billion annually nationwide from retirement accounts, according to the Government Accountability Office.
"Alliance Benefit Group of Illinois is providing a valuable service to its plans and participants by offering access to portability solutions that can help participants take their savings with them when they change jobs," Retirement Clearinghouse President and CEO Spencer Williams said. "Consolidating retirement savings accounts is a cumbersome and time-consuming process, and participants who don't receive guidance tend to cash out or leave their balances behind. These decisions can deplete participants' savings over time, so Alliance Benefit Group's forward-thinking initiative is vital for helping Americans save more for retirement - and creates a competitive advantage for the firm."