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Potter County adopts Empower 457(b) portability amendment to reduce lost small retirement balances
Summary
The Potter County Commissioners approved an amendment to their 457(b) deferred compensation plan to join an auto-portability network offered by Empower, a change commissioners were told will cost the county nothing and help employees keep retirement savings when they change jobs.
Potter County commissioners voted unanimously to adopt two Empower amendments that would move low-balance 457(b) accounts into an auto-portability network intended to reduce lost retirement savings.
An Empower representative (S9) told the court the change responds to the federal Secure 2.0 Act and would let small account balances transfer seamlessly between participating vendors without county expense. "There's no cost to Potter County for this," S9 said, adding that fees for the service would be charged to plan participants. Commissioners discussed the timing and mechanics; S6 moved to adopt Potter County's participation in the portability service network and to select Empower's automatic rollover option, and S10 seconded the motion.
The amendment would replace the county's current practice of using an outside vendor (Millennium Trust) to hold forced-out accounts and instead rely on the portability network of five providers (including Alight, Vanguard and Fidelity) so that terminated participants' balances follow them to new employers when possible. County staff noted the change is optional and must be signed by Nov. 1 to opt in. The motion passed on a 5-0 vote.
Why it matters: County staff said the change helps prevent workers from cashing out small retirement balances after job changes, preserving retirement savings for long-term employees and reducing administrative burden on the county plan administrator.
