35 new Warwick jobs touted as CollegeBoundfund transition nears

By John Howell
Posted 6/23/16

More than 384,000 people – 18,500 from Rhode Island – who have been saving for their children and grandchildren’s education through the CollegeBoundfund will have their accounts transition to a …

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35 new Warwick jobs touted as CollegeBoundfund transition nears

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More than 384,000 people – 18,500 from Rhode Island – who have been saving for their children and grandchildren’s education through the CollegeBoundfund will have their accounts transition to a new fund manager beginning July 12.

And playing a key role in that transition and in customer relations going forward is Ascensus Inc., which is the largest independent retirement and college savings services provider in the country, helping more than six million Americans save for the future.

On Monday, Ascensus College Savings, a division of Ascensus, officially opened offices on Kilvert Street in Warwick, bringing 35 new jobs to the state with the prospect of many more during seasonally busy periods and, in the long range, the potential for 120 jobs.

Gov. Gina Raimondo hailed the additional jobs and Ascensus’ decision to locate an office in the state.

Observing that she has heard employment will inch up, she said: “Before you know it their headquarters will be in Rhode Island.”

Jeff Howkins, president and CEO of Ascensus College Savings, said the company is operating 33 plans in 18 states with a total of 3.5 million accounts and assets of $71 billion.

Howkins, a Rhode Island native, lives in Cowesett and until now has been commuting to Ascensus College Savings headquarters in Newton, Mass.

He said 300 were interviewed to fill the Warwick jobs, and while not specifying the salary ranges, he said the company offers full benefits including health care and a 401k plan, and naturally, a 529 plan, too.

“It’s very competitive,” he said.

But what does that mean for the Rhode Islanders who have accounts with assets of $353 million?

Lisa Churchville, chief operating officer for General Treasurer Seth Magaziner, said Alliance Bernstein would cease running the fund July 8 and that for a four-day period the accounts would be inactive until Ascensus starts operations on July 12. Alliance Bernstein has managed the fund since 1998. Invesco will direct investment of the funds.

As for customer relations, Churchville said Ascensus is a top service provider with an improved website and state-of-the-art technology. On the investment side, Churchville said accounts would automatically transition to Invesco with the company providing a new age-based portfolio. She said whereas Alliance Bernstein “rebalanced” age-based portfolios every two years, Invesco would be doing it more frequently. She said fees would be reduced.

On Monday, the focus was on new Rhode Island jobs.

Magaziner called the Ascensus office “a perfect example of bringing jobs to Rhode Island.” He also promoted the benefits of the CollegeBound Fund 529 plan as it exempts the payment of capital gains taxes and provides for tax write-offs of contributions.

Magaziner said the state went through an extensive review of account managers when seeking proposals to run the program and that “Ascensus knocked it out of the park.”

In a statement, he said: “All children deserve a good education, and our state’s economic comeback will only be as strong as the skills of our workforce. Our partnership with Ascensus will ensure that more Rhode Islanders can realize the dream of receiving a college education.”

“As a lifelong Rhode Islander, I could not be more personally and professionally thrilled to be bringing Ascensus College Savings’ passion and expertise to Rhode Island to help make saving for college easier and more accessible,” Howkins said in a statement.

“Our whole team looks forward to delivering on our promise to Treasurer Magaziner to increase participation in the Rhode Island’s 529 plan through new investment options, lower costs, expanded service offerings and a reinvigorated marketing and sales effort,” Howkins added.

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