The Oregon Retirement Savings Plan, which is a state run 401(k) multiple employer plan with a July 2017 launch hired Ascensus its third party administrator (TPA).
Ascensus will absorb early startup costs of the MEP. They will collect a small annual fee from retirement accounts to cover the cost of administration, recordkeeping, marketing, and the investment options made available to plan participants.
While I have always been a big fan of Ascensus. They’ve come a long way from their days as Bisys in terms of quality of plan administration and dedication to superior service. My concern is that I don’t believe these state run MEPs will gain much traction in the marketplace because of concerns of trusting a state government with a 401(k) participant’s retirement savings. Small employers are likely to be wary of doing business with the state government even it could mean being part of a retirement plan where they abdicate their fiduciary liability.
Good luck to my friends at Ascensus.
