Ascensus Selected to Manage the Secure Choice Retirement Savings Program

By a News Reporter-Staff News Editor at Investment Weekly News -- Ascensus, a technology-enabled solutions provider that helps more than 7 million Americans save for the future, has been selected by the state of Illinois to manage the Secure Choice retirement savings program.

With expertise in the management of large-scale savings programs and a shared commitment to helping Americans save for a brighter future, Ascensus emerged as Illinois' preferred partner following a public-bidding process. 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. Employees' savings can be easily carried with them throughout their career, allowing them to continue to build their retirement nest egg.

Currently, half of Illinois' private-sector employees do not have access to an employer-sponsored retirement plan. When Secure Choice has been 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.

"Secure Choice will provide state residents who haven't had the opportunity to plan for retirement with a smart way to do so," said Bob Guillocheau, president and chief executive officer of Ascensus. "We're honored to partner with the state of Illinois as they strive to make it simple and affordable for employers to help employees save for retirement."

Keywords for this news article include: Ascensus, Finance and Investment.

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