Empower Secures Six-Year Extension with Texas Retirement System
Event summary
- Empower renews contract with the Employees Retirement System of Texas (ERS) for six years, effective January 1, 2027.
- The deal covers administration for roughly 300,000 Texas employees with approximately $7 billion in assets under administration (AUA).
- Since 2009, Texa$aver 401(k) plan assets have grown by 88% and the 457 plan assets have more than doubled.
- Empower provides My Total Retirement™ service to participants, offering personalized retirement strategies.
The big picture
Empower's contract extension with ERS underscores its stronghold in public sector retirement services, a segment increasingly prioritizing personalized financial planning. The deal highlights Empower's ability to manage large-scale government programs while driving participant engagement and asset growth. This renewal comes as competition intensifies among recordkeepers vying for long-term contracts with state and municipal entities.
What we're watching
- Governance Dynamics
- How ERS's continued trust in Empower reflects broader trends in public sector retirement plan administration.
- Market Positioning
- Whether Empower can sustain its leadership in government 457 retirement plans amid competitive pressures.
- Participant Engagement
- The pace at which Texa$aver participation and contributions grow under the renewed contract.