The company will invest more than $4.1 million to expand their headquarters and corporate office in Charlotte.
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.
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. ■