Millennium Trust Company officially kicked off testing of its new open portability network on Thursday.
The network, which is open to the industry—including other portability networks—is designed to connect with all types of providers who want to make the movement of funds between retirement accounts faster and easier, helping reduce unnecessary retirement savings leakage and increasing access to savings and investment options for all.
First announced back in April, Oak Brook, Ill.-based Millennium Trust’s open portability network eliminates the friction and hassle of moving money within the retirement system by digitizing the transfer process. Its dual solution enables both auto portability and active portability within one network, enhancing the company’s existing portability solution and allowing clients to offer auto portability services.
“We’re excited to begin testing of our open portability network with several valued partners and believe that our approach of ‘one network, two solutions’ will create incredible value for the retirement industry”
Millennium Trust’s Erik Beck
“We’re excited to begin testing of our open portability network with several valued partners and believe that our approach of ‘one network, two solutions’ will create incredible value for the retirement industry,” said Erik Beck, Millennium Trust chief commercial officer.
Portability has always been part of Millennium Trust’s automatic rollover solution and gives individuals the choice to decide what to do with their retirement savings. Active portability through the new network will allow individuals to digitally transfer their funds simply and quickly between retirement accounts. Automatic rollover solutions with active portability reduce unnecessary retirement savings leakage and improve long-term financial outcomes.
“Our goal is to make it easy for people to make and execute the right financial decisions for themselves. This network will reduce paperwork, manual checks, phone calls, and general frustration with the process. We’re eliminating friction, which is good for consumers and for the industry,” said Dan Laszlo, Millennium Trust chief executive officer. “It lowers costs for our institutional clients, gives people better control of their retirement funds, and increases customer satisfaction—all clear benefits of participation.”
Millennium Trust’s open portability network also enables auto portability as an optional add-on to its existing auto rollover solution, to help individuals who aren’t actively engaged with their retirement savings. The network will be ready to enable auto portability well ahead of Jan. 1, 2024, when auto portability may first be offered under the SECURE 2.0 Act.
“We’ll be ready for any partner that wants auto portability on Day 1,” Beck said.
Millennium Trust said its scale and existing technology has allowed it to quickly connect the industry and bring this functionality to market. These efforts are just one aspect of the company’s more than $30 million commitment to combat retirement savings leakage by reducing friction, expanding access to savings options, and providing improved financial education.
The company plans to add recordkeepers, automatic rollover providers, other portability networks, and other industry leaders interested in improving long-term financial outcomes to the network soon. Millennium Trust invites those interested in testing the new functionality or learning more about the open portability network go to portability.com.
SEE ALSO:
• Principal Becomes 6th Recordkeeper to Join Portability Services Network
• Millennium Trust Adding Auto Portability to its Automatic IRA Rollover Solution
• The 401(k) ‘House-Cleaning’ to Come
• The Big Shift Towards Auto Portability
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
