Tuesday, August 11, 2020

Financial Technology Company to Expand Headquarters, Adding 300 Jobs in Mecklenburg County Retirement Clearinghouse to invest over $4 million in Charlotte

Raleigh, N.C.
Aug 11, 2020

Retirement Clearinghouse, LLC (RCH), a leading national name in retirement plan services, will create 300 new jobs in Mecklenburg County, North Carolina Governor Roy Cooper announced today. The company will invest more than $4.1 million to expand their headquarters and corporate office in Charlotte. 

“North Carolina continues to attract innovative technology companies like Retirement Clearinghouse,” said Governor Cooper. “This Mecklenburg County expansion highlights the region and how its talented workforce can help tech companies reach their business goals.”

Founded in 2001, Retirement Clearinghouse provides retirement asset portability services to employees as they move their retirement savings from one employer plan to another. RCH leverages innovative financial technology to simplify and streamline the process of consolidating retirement savings accounts for six million of the nation’s employees. Through its existing partnerships with 401(k) recordkeepers, third-party administrators, and plan sponsors in more than 28,000 company retirement plans, RCH reduces employee cash-outs by 52 percent, thus enhancing the retirement income security for U.S. workers. For more information, please visit https://www.rch1.com

“We look forward to fulfilling our long-term goal of preserving retirement savings for millions of working Americans,” said Spencer Williams, Founder, President, and CEO of Retirement Clearinghouse. “We are proud to continue our growth right here in Mecklenburg County, where our company was founded.”

“Retirement Clearinghouse is a pioneer in the fintech industry, and we are proud that North Carolina will be the backdrop for its continued growth,” said North Carolina Commerce Secretary Anthony M. Copeland. “The company’s decision confirms that North Carolina’s fertile economic landscape continues to foster the success of growing, technology-driven enterprises.”

The North Carolina Department of Commerce led the state’s efforts to secure the expansion by Retirement Clearinghouse, which also considered other national destinations. The company’s 300 new jobs will include information technology, call center, client and shareholder services, human resources, finance, administrative, and management staff. The project will generate an annual payroll impact of more than $19 million for the region.

Retirement Clearinghouse’s North Carolina expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of the grant, the project is estimated to grow the state’s GDP by more than $672 million. Using a formula that takes into account the new tax revenues generated by the 300 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $3,267,000 over 12 years. State payments occur only after verification by the departments of Commerce and Revenue that the company has met incremental job creation and investment targets. 

Projects supported by JDIG must result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company. The provision ensures all North Carolina communities benefit from the JDIG program. Moreover, Retirement Clearinghouse’s decision to expand in Mecklenburg County, classified under the state’s economic tier system as Tier 3, means the company’s JDIG agreement will result in as much as $1,080,900 in new funding for the state’s Industrial Development Fund–Utility Account. The Utility Account helps rural and more distressed communities finance infrastructure upgrades necessary for attracting future business. More information on the state’s economic tier designations is available here.

In addition to the N.C. Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in the project include the North Carolina Community College System, Mecklenburg County, the City of Charlotte, and the Charlotte Regional Business Alliance. 

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