BET founder rolls out new consortium to help Black Americans save $619 billion over a generation

Black Entertainment Television (BET) founder and business mogul Robert L. Johnson is taking his biggest plunge to help close or narrow the nation’s lingering racial wealth gap.

Retirement Clearinghouse L.L.C. (RCH), among the firms owned by RLJ Cos., is uniting with 3 of the nation’s largest 401 (k) record keepers to save US$619 billion in retirement income for Black American workers over a generation. Fidelity, Vanguard, Alight Solutions, and RCH are setting up a consortium called Portability Services Network (PSN). It aims to accelerate the nationwide adoption of auto portability to help America’s underserved and under-saved workers enhance their finances in their golden years.

According to Johnson in an interview with Black Enterprise, It is the first time ever – that he’s aware of – that a Black company and white companies have combined for the sole purpose of improving financial security and aimed to prevent individuals from cashing out of 401(k) accounts early.

“This is truly a historic moment for the industry, as well as our country, and is the first step to reduce the wealth gap between Black and white households in this country,” Johnson stated.

The consortium now represents about 43.8 million workers covering over 48,000 employer-sponsored retirement plans, based on data published by Pensions & Investments, based on a news release. PSN, which Johnson says will start in the first quarter of 2023, will use RCH’s auto portability solution to build a nationwide digital hub connecting workplace retirement plan recordkeepers and the plan sponsors they serve.