Ascensus will acquire Mutual of Omaha’s 401(k) recordkeeping business under terms of an agreement announced this week.
Through the transaction, Dresher, Pa.-based Ascensus will assume full responsibility for the recordkeeping business, which serves more than 2,300 retirement plans and 65,000 participants, and has more than $3.9 billion in assets under administration. Financial terms of the transaction are not being disclosed.
Ascensus and Mutual of Omaha have collaborated for more than 20 years to help savers reach their retirement goals. As an outsourced partner, Ascensus has provided recordkeeping; digital experiences for plan sponsors, third party administrators, and advisors; and participant services for the business it is acquiring.
“We are honored that Mutual of Omaha, a company we have respected throughout our many years of partnership, has entrusted Ascensus with the retirement savings futures of their valued clients and savers,” said Ascensus President Nick Good. “Our clients and plan participants can look forward to a very straightforward transition and access to an enhanced suite of solutions and capabilities.”
The companies said there will be no change to plan sponsor and participant web or service experiences as a result of the transaction—participants already log into their accounts through the Ascensus portal and Ascensus provides full account processing and servicing to sponsors and their savers today.
“As a customer-focused company, we determined after a thorough strategic review of our 401(k) business that transitioning it to Ascensus would be in the best interest of our customers and our company.”
Mutual of Omaha’s Stacy Scholtz
Participants will, however, gain access to complimentary Financial Finesse Essentials virtual coaching and planning tools offered by Ascensus—and benefit from Ascensus’ continued investment in innovative technology platforms and intuitive user experiences.
“As a customer-focused company, we determined after a thorough strategic review of our 401(k) business that transitioning it to Ascensus would be in the best interest of our customers and our company,” said Mutual of Omaha’s Executive Vice President Stacy Scholtz. “We anticipate a smooth transition for our customers and a continuation of the service they have come to expect.”
Back in February, Ascensus announced a restructuring its retirement line of business to four segments, in an effort to tailor its services to partners, clients, and advisors. The four business segments include Core Retirement; Partner Solutions; Small Business; and Retirement Products & Solutions. All segments and their leaders report to Ascensus President Nick Good.
Ascensus administers more than 154,000 retirement plans serving nearly five million retirement savers as of Dec. 31, 2023. Overall, the company serves more than 14 million people saving for retirement, education, and other expenses on a tax-advantaged basis.
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