Recordkeeper consolidation continues, as Ascensus and Mutual of Omaha have reached a definitive agreement where the retirement plan administrator will acquire Mutual of Omaha's 401(k) recordkeeping business, according to a March 27 announcement by the firms.
Through the transaction, Ascensus will assume full responsibility for the recordkeeping business, which serves more than 2,300 retirement plans and 65,000 savers, and has more than $3.9 billion in assets under administration (AUA), the announcement notes.
The acquisition apparently was a good fit. 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.
The companies said there will be no change to plan sponsor and participant web or service experiences because of the transaction—participants already log into their accounts through the Ascensus portal will continue to have access to full account processing and servicing.
Participants will, however, gain access to complimentary Financial Finesse Essentials virtual coaching and planning tools offered by Ascensus—and benefit from Ascensus' technology platforms and intuitive user experiences.
“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,” stated 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.”
Added Mutual of Omaha's Executive Vice President Stacy Scholtz, “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. We anticipate a smooth transition for our customers and a continuation of the service they have come to expect.”
The pick-up of Mutual of Omaha comes as Ascensus announced in early February that its Retirement line of business will now comprise four business segments, each focused on the specific needs and goals of its partners, clients, and advisors. They include:
- Core Retirement, representing the company’s Ascensus-branded defined contribution segment, led by Jason Crane, who also leads distribution for all of Retirement.
- Partner Solutions, serving Ascensus’ private-label partnerships.
- Small Business, encompassing the company’s CoPilot, Individual(K), SEP, and SIMPLE plans.
- Retirement Products & Solutions, providing tailored solutions to banks, credit unions, and other entities.
Ascensus has more than $760 billion in AUA among 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.
Financial terms of the transaction were not disclosed.
