Retirement Clearinghouse Could Get Fee Waived on Savings Transfers

The Labor Department is proposing to make it easier for a financial technology firm to transfer small sums of savings in individual retirement accounts to new ones when the employees change jobs.

The DOL Nov. 6 published a proposed exemption for the Retirement Clearinghouse LLC, also known as RCH, to allow it to be exempt from a fee its charged under federal employee benefits law when the transfers are made. RCH’s auto-portability program is designed to reunite workers with savings left behind at other places of employment, the proposal said.

The proposal, which must undergo a notice-and-comment period, could help ...