A missed asset and account target appears to be catalyzing the Oregon Treasury Savings Network to end its contract with record-keeper Ascensus, which runs OregonSaves, the first state-facilitated retirement program, according to a report from Pensions & Investments.
The contract governing the relationship between the two parties dictates that certain asset and account thresholds must be met, or Ascensus could attempt to increase its fees and reduce its expenses.
Those negotiations have resulted in Ascensus likely pulling out of the contract. A spokesperson for the firm confirmed a 2021 transition to a new, unnamed service provider, according to the report.
Instead, Bank of New York Mellon subsidiary Sumday, in partnership with Vestwell, could be awarded the contract.
Official negotiations with Sumday are yet to begin, according to the report, but David Bell, deputy director of the Oregon Treasury Savings Network, wanted to start looking at alternatives.
"We cannot handle a pause in the program," he said
OregonSaves, which launched in 2017, serves more than 70,000 people through their employers, according to Ascensus.