Empower Financial Services Renews Texa$aver Retirement Plans Contract

Empower Financial Services has announced its renewed contract for administering the Texa$aver 401(k) and 457 retirement plans with the Employees Retirement System of Texas (ERS). This agreement, approved by the ERS Board of Trustees, will be effective from January 1, 2027, through December 31, 2032.

Local Commitment and Personalized Service

Joe Smolen, President of Empower’s Workplace Solutions, emphasized the company's strong local presence in Austin. With affiliations across over 200 state agencies and higher education institutions, Empower is dedicated to providing personalized service, bolstering Texas’s reputation as a model public employer.

Managing Significant Assets for Texas Employees

Empower is tasked with managing approximately $7 billion in assets under administration for about 300,000 Texas employees. The company will continue offering the My Total Retirement™ service, delivering tailored investment and planning solutions to state and higher education employees.

Strengthening Relationships and Engagement

Marybeth Daubenspeck, Empower's Executive Vice President of Government and Taft-Hartley Markets, noted the robust relationships formed by their retirement plan advisors, including Spanish-speaking representatives, across Texas. These plans have experienced significant increases in participation, contributions, and asset growth.

Significant Growth in Retirement Plan Assets

Since 2009, Empower has facilitated substantial growth in the Texa$aver plans, with 401(k) plan assets growing by 88% and 457 plan assets increasing by 106%. Contributions to these plans have also seen considerable rises, reflecting greater engagement among state employees regarding retirement security.

ERS Executive Director Porter Wilson highlighted the benefits of this renewed contract, ensuring high-quality plan administration at competitive costs. ERS continues to manage benefits critical to the financial security of employees, which are integral to the compensation structure of Texas agencies and higher education institutions.