Automatic Portability Transaction Regulations

The Department of Labor’s Employee Benefits Security Administration is proposing regulations intended to enhance the security of workers’ retirement savings by providing a regulatory framework for automatic portability transactions. An automatic portability transaction involves a mandatory distributions from a retirement plan of benefits with a value of less than $7,000 to an IRA established on behalf of an individual when the individual leaves a job which are transferred to an eligible plan sponsored by the new employer when individual gets a new job. Automatic portability programs help worker retirement security by protecting against losing retirement savings when employees change jobs.