Ascensus Lands Another State-Run Retirement Plan Client
Ascensus, already tapped to administer the OregonSaves state-run IRA program, has landed another client.
The Dresher, Pennsylvania-based provider announced last week that it had been chosen as Illinois’ preferred partner for its Secure Choice program following a public-bidding process. According to a press release
, the selection is subject to successful contract negotiations with Ascensus, which will begin immediately.
In 2014, Illinois lawmakers passed a law requiring employers in business for at least two years with at least 25 employees to either offer their own retirement plan to workers or participate in Secure Choice. Unless an employee opts out, Secure Choice will automatically deduct contributions from employees’ paychecks and invest these savings in a Roth IRA account. The program will be launched in phases in 2018 and 2019 based on the size of a company’s workforce.
Through Secure Choice, retirement savings accounts will be connected to the associated employee, not the employer. When the program is fully implemented, an estimated 1.2 million workers will have retirement plan access directly through Secure Choice or because an employer chose to initiate its own retirement plan.
Ascensus supports approximately 50,000 retirement plans and more than 4 million 529 college savings accounts, and also administers more than 1.5 million IRAs and health savings accounts.