Ascensus surpasses $1B threshold in state-IRAs
Ascensus announced the company has surpassed $1 billion in state-facilitated retirement program assets under administration (AUA) on their platform.
The firm currently serves as program administrator for CalSavers and Illinois Secure Choice—two of the eight state-facilitated automatic individual retirement accounts (IRA) programs currently operating. Between the two programs, Ascensus oversees 75% of the accounts and assets under administration across the state retirement industry.
“While the $1 billion mark is an exciting threshold, what’s even more encouraging is that this represents nearly 650,000 savers—many who are saving for retirement for the first time,” said Peg Creonte, president of Ascensus Government Savings, the line of business that administers state-facilitated retirement programs. “The growth in these programs is a direct result of the hard work, creativity, and collaboration between Ascensus and the Illinois and California teams with whom we partner every day.”
The two programs reached a billion dollars in assets after less than six years of operation, with Illinois Secure Choice launching in 2018 and CalSavers just a year later. Their growth has accelerated in recent years, with combined assets more than doubling since the start of 2023 due to an influx of newly registered employers.
Industry leader consortium launches managed account solution
LeafHouse, iJoin, and ARS are are partnering to launch their Automated Personalized Portfolio, powered by State Street GTC Retirement Income Builder Series target date funds (TDFs).
The Automated Personalized Portfolio will offer advice geared towards asset management and lifetime income solutions. Global Trust Company (GTC) is the fiduciary and trustee of the series, while LeafHouse will be the fund fulfillment and allocation technology provider as well as the 3(38) fiduciary. The starting cost of the APP is 7 basis points, not including investment expense.
The LeafHouse FlexFiduciary and reallocateIT portfolio management technologies, in conjunction with iJoin’s participant experience, creates an automated personalized portfolio. According to the release, the solution’s core investment, the State Street GTC Retirement Income Builder Series, delivers growth potential, retirement risk mitigation, and a personalized lifetime income strategy by embedding ARS’ patent-pending Lifetime Income Builder into the core portfolio’s glidepath. Dimensional Fund Advisors LP will provide evidence-based investment solutions to APP clients to complement the core investment.
“This consortium of industry-leading product innovators was established to help drive better participant outcomes through participant-centric innovation,” said Dave Paulsen of ARS. “We are committed to offering participants personalized saving vehicles that also seek to deliver lifetime income, aiming to provide the tools they are asking for to help achieve their financial goals in retirement.”
NEPC names DC Solutions lead
NEPC, LLC announced that Mikaylee O’Connor will join the firm as principal, head of Defined Contribution (DC) Solutions, effective April 1.
O’Connor will be responsible for leading the way NEPC’s DC practice delivers solutions to clients. As O’Connor, in addition to serving clients, will oversee NEPC’s DC plan trends research and data analytics, guiding strategic initiatives related to target date funds, managed accounts, retirement income solutions, and other investments that are vital to the retirement outcomes of participants. She will report directly to Bill Ryan, partner and Defined Contribution team leader.
“As a team, we are focused on helping our clients navigate and lead the discussion around issues relating to retirement income,” said Ryan. “Mikaylee’s extensive experience and deep expertise working with a diverse client set will position NEPC to continue identifying innovative solutions that help alleviate those concerns.”
Before joining NEPC, O’Connor was a principal, senior defined contribution strategist within PGIM DC Solutions. She provided thought leadership to clients and supported the development of solutions designed to improve participant outcomes. Prior to that, O’Connor worked at RVK’s DC practice as their head of DC Solutions overseeing strategic direction and growth of the practice.
O’Connor sits on the DCIIA Operating and Executive Committees as well as on the Legislative Committee of NAGDCA.
“Joining NEPC’s esteemed and innovative team marks an exciting phase in my career,” said O’Connor. “We are currently undergoing a unique transition in the retirement space. I am eager to contribute to the firm’s trajectory and partner with our DC team and clients to lead the creation and delivery of world-class DC solutions.”
Maslow Wealth Advisors hires IAR, announces plans to open satellite office
Maslow Wealth Advisors has announced the addition of Fred Frey to the firm and plans to open a satellite office in north Austin.
As an investment advisor representative, Frey will focus on providing clients with long-term investment management and wealth planning strategies. Paul Lueb, a partner with the firm, will manage the satellite office.
“This is an exciting time for our firm. These two big wins – Fred joining and Paul opening a second office, both hot on the heels of our rebrand – are inspiring,” said CEO Tylor Bordelon Seaman. “We are offering a different ‘brand’ of financial services than what’s currently out there in the market, and people want it.”
After graduating from the University of Virginia in 1988, Frey spent five years in the United States Navy as a Bombadier/Navigator. After leaving the Navy, he received a graduate degree from Old Dominion University and joined Maxwell Locke & Ritter LLP as an auditor and tax professional. In 1997, Frey and several colleagues transitioned away from their traditional CPA roles and founded the investment advisory practice, ML&R Wealth Management. He was ultimately named a partner of Maxwell Locke & Ritter in 2000.
“I’m incredibly excited to join the Maslow team. The firm’s mission deeply resonates with my own values,” said Frey. “I’m eager to contribute my expertise towards our shared goals.”
Voya expands NQDC offerings to small businesses
Voya Financial, Inc. announced the launch of “Business-ready” — the latest addition to the firm’s lineup of nonqualified deferred compensation (NQDC) solutions.
Business-ready provides a more simplified NQDC offering designed specifically for smaller-size employers as an added solution for their executive benefits package.
“At Voya, we continue to see a growing interest in our executive benefit solutions — so much so that in 2023 we saw a 117% increase in total plans sold in Voya’s NQDC offerings over the prior year1,” said Kirk Penland, senior vice president, Nonqualified Markets. “At the same time, we also know there is not a ‘one size fits all’ solution when it comes to building an executive’s total rewards package. As smaller employers have unique needs, our new Business-ready offering provides those employers with an opportunity to offer a successful NQDC offering, without the complexities of a tailored solution that many larger companies seek today.”
Business-ready is available to any size 409A (for-profit) company but has been designed specifically for smaller-size employers, including those with less than 400 employees. Its features include:
- A pre-built investment lineup: Offering 21 asset categories, including equities, fixed income (i.e. short-/intermediate-term bonds, high yield, global) and alternatives (such as real estate) managed by Voya Investment Management.
- Implementation and administration: This includes mutual funds and corporate-owned life insurance, as well as implementation and ongoing plan management tailored to employers on the smaller end of the market.
- Flexible contribution and distribution schedules.
“Many executives face unique challenges saving for retirement due to contribution limits of a traditional retirement savings plan,” added Hunter Penland, vice president, Non-Qualified Markets sales and service at Voya. “Because a NQDC plan can help address their needs, these options are becoming increasingly popular across the industry and even more so among our existing clients at Voya.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.