Q1. Will Invesco continue to sell and support the suite of OppenheimerFunds sponsored retirement programs?
A1.Invesco will integrate and continue to support and sell the OppenheimerFunds sponsored Traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP IRAs, Payroll Deduct IRAs, Single/Solo K plans, 403(b)(7) plans and Coverdell ESA programs. Existing Profit Sharing Plans will continue to be supported, including the addition of new participants to existing plans; however, no new Profit Sharing Plans will be established.
Q2. When is the “Transfer Date”?
A2. The date of closing of the Invesco-OppenheimerFunds transaction (the “Transfer Date”) was May 24, 2019.
Q3. Will the investments change? Share balance, funds, share prices? Different selection?
A3. The change in trustee/custodian will not affect the mutual fund investments in your client’s IRA or retirement plan account. Immediately after the closing of the Invesco-Oppenheimer Funds transaction, shareholders will own shares of an Invesco Fund that are equal in total value to the total value of the shares of the corresponding Oppenheimer Fund that were held immediately prior to the closing of the transaction. Invesco will be among the largest asset managers, with over $1 trillion in assets under management, and will offer a broader range of equity, fixed-income, alternative and other investment options. You will also have full access to Invesco’s shareholder and transfer agency servicing platforms, which provide customer assistance through the internet, by telephone and by mail.
Q4. What are the differences between the Invesco and OppenheimerFunds account agreements?
A4. Please refer to the account agreements for the applicable plan for details about differences in the agreements. If you have specific questions about fees or changes to services, please see the following questions.
Q5. What are the OppenheimerFunds Account Fees?
A5. The Annual Account Maintenance Fee (Fee) is a charge that is assessed, per participant,
on OppenheimerFunds-sponsored retirement plan accounts. The Fee for 403(b), Single K and Profit Sharing plan accounts is $30. For Traditional IRA, Roth IRA, Simple IRA, SEP IRA and Coverdell ESA accounts, the Fee is $15. The Fee is assessed once per year per plan type, regardless of how many funds your client invests in through that retirement plan type. If the total value of the participant’s investments in retirement and/or non-retirement accounts in Oppenheimer funds, excluding OppenheimerFunds direct-sold 529 plans, is $50,000 or more, the annual maintenance fee is $0.
The OppenheimerFunds retirement plan annual account maintenance fee for 2019 was deducted from your client's accounts in January 2019. Your clients will not be assessed another IRA annual account maintenance fee by Invesco until January 2020.
Q6. What is Invesco’s retirement account fee structure?
A6. Invesco assesses an annual account maintenance fee in January of each year. Invesco currently charges $15 to retirement accounts with a total balance less than $50,000. No annual maintenance fee is charged on retirement accounts with a balance of $50,000 or greater on the day the fee is assessed. The fee is charged for each different retirement plan account type held (e.g., Traditional IRA, Roth IRA, etc.). However, if multiple fund positions are held in one retirement plan account type, the total fee for that account is $15.
Q7. What will be the fees for 2020 going forward?
A7. We cannot predict if or when fees will change after the closing of the Invesco-OppenheimerFunds transaction. If there are changes to your clients’ fees, Invesco’s custodial agreement states that any changes to this fee structure require at least 30-days written notice.
Q8. My client has not paid a fee before, why will s/he have to pay one now?
A8. The OppenheimerFunds retirement plan annual account maintenance fee for 2019 was deducted from your clients’ account in January 2019. Shareholders will not be assessed another IRA annual account maintenance fee by Invesco until January 2020. Your clients account will be subject to Invesco’s published fee schedule at that time.
Q9. Are there transaction fees?
A9. OFI Fees: There are generally no transaction fees except in the case of a loan from a Single K (Solo K) or 403(b). In addition, expedited Delivery Fees for loan or distribution check (upon participant request):
• Overnight via UPS - $20.00–$25.50
• Post Office Express- $20.00
• Federal Bank Wire - $10.00
Invesco Fees: Generally, Invesco does not charge transaction-based fees on retirement accounts except in the case of a loan from a Solo K. However, if expedite delivery of a redemption check from your client’s account is requested, Invesco does assess a $20 fee for overnight delivery.
Q10. Who is responsible for 2019 tax forms?
A10. Invesco will be responsible for delivery of tax forms for the tax year during which the transaction is completed.
Q11. How will I be able to view my clients accounts?
A11. Until the transaction is complete, you may continue to access your clients’ OppenheimerFunds’ account in the same manner as you do currently. Once the accounts are transitioned to Invesco, you will access clients’ accounts via DST Vision.
Q12. How will my clients access their accounts?
A12. Until the transaction is complete, your clients may continue to access their OppenheimerFunds’ account in the same manner as they do currently. When your clients’ account transitions to the Invesco platform, they will receive a welcome letter from Invesco that will include instructions on how to register for online account access at invesco.com/us.
Q13. How can my client transfer their account to another custodian?
A13.Shareholders requesting a Change of Trustee (moving same plan type to another company) or a Direct Rollover (moving from one retirement plan to another eligible retirement plan) should contact the receiving vendor for specific form(s) requirements. Generally, the shareholder will need to complete an applicable transfer/rollover form with the applicable signatures. 403(b)s will require a signature from a TPA or Plan Sponsor and Single K/Profit Sharing Plans will require the signature of the Plan Administrator.
OppenheimerFunds will require a signed letter of acceptance from the receiving vendor in order to consider the paperwork in good order.
Q14. How will this impact my client’s Required Minimum Distribution (RMD)?
A14. If your client currently satisfies their annual RMD with a systematic withdrawal plan, that systematic withdrawal plan will carry over to the Invesco platform on the Transfer Date.
After the Transfer Date, Invesco will also provide assistance with calculating your RMD upon request:
- Use the online RMD calculator available on the Invesco website at invesco.com/us.
- Contact an Invesco Client Services representative at 800 959 4246 to perform the calculation for you.
- Complete the appropriate Invesco distribution form to request that Invesco calculate and distribute your RMD.
Q15. Will my clients’ current account features carry over?
A15. Generally, yes. Systematic distributions, automatic purchases, systematic exchanges and dividend options will carry over to your clients’ account on the Invesco platform at conversion.
Any changes to account features that may impact shareholders will be communicated prior to the transition.
Q16. If my client is in the middle of a life event change that involves an account transaction, how will this impact the account transaction?
A16. We recognize that account transactions due to a life change event, such as the death or divorce of a shareholder, can sometimes take time to finalize. Each requested transaction will be reviewed and researched by Invesco, and previously communicated instructions will be honored where possible.
Questions Regarding the Contribution Processing System (CPS)
Q17. When will CPS be shut down for OFI plan sponsor client payroll contributions?
A17. As we communicated to plan sponsors in late April, CPS will become unavailable as of market close on May 24, 2019. Communications about clients’ new login will be sent immediately after conversion weekend. In the meantime, they can familiarize themselves with Invesco’s RPM system by checking out their demo at https://www.invesco.com/portal/site/us/investors/rpm. Users should not try to establish their own login credentials prior to the close because Invesco’s system is set up to automatically generate their Retirement Plan Manager (RPM) account set-up and will send a welcome notice with instructions to all CPS employers immediately after the conversion.
Q18. How can payroll contributions be submitted post-close?
A18a. After May 24, 2019, 403(b), Single K, SIMPLE IRA, SEP IRA and Trusteed Profit Sharing employer-sponsored plans who currently use CPS will transition to Invesco’s Retirement Plan Manager (RPM) system where eligible. RPM allows plan sponsors and TPAs to access plan information and remit contributions on behalf of employers. At conversion, clients’ payroll remittance records in CPS will automatically transfer over to RPM including participant contribution listings, allocations (if they were previously in the system) and ACH banking information. Remittances that are currently scheduled on an automated frequency via ACH will not transfer over. Post-close, clients can set up a new schedule for automated remittances in RPM.
As always, clients should carefully review the listing and make any necessary updates on an ongoing basis.
A18b. After May 24, 2019, employers sponsoring Payroll Deduct IRA and outside trusteed retirement plans will no longer have online access for remitting contributions. Contribution transmittal forms for these plans will be available online at invesco.com/us. If you have questions regarding the contribution transmittal process, you may contact Invesco at 800 776 4246.Contribution transmittal information and checks payable to Invesco Investment Services, Inc. should be mailed to:
Via Regular Mail
Invesco Investment Services, Inc.
P.O. Box 219078
Kansas City, MO 64121-9078.
Via Overnight Courier
Invesco Investment Services, Inc.
c/o DST Systems, Inc.
430 W 7th Street
Kansas City, MO 64105-1407
A18c. Clients that currently submit paper remittances can continue to do so. After the Transfer Date, the remittance information and checks made payable to Invesco Investment Services, Inc. should be sent to Invesco’s mailing address shown above.
Q19. Will financial advisors be able to transmit contributions on behalf of their employer sponsored retirement plan clients to Invesco?
A19. Invesco allows financial advisors to remit contributions for plans where the advisor is serving as a plan administrator/remitter as authorized in writting by the employer. Financial advisors who previously remitted contributions on behalf of their retirement plan clients using CPS will be able to continue remitting contributions to Invesco for those plans.
Q20. Will clients be able to access historical CPS transaction data in RPM?
A20. RPM users will be able to pull trust reports for transactions for the full year post conversion including all transaction history for 2018. Plan Sponsors will receive more information about RPM when they receive their welcome email communication at close. Clients may also wish to obtain your historical activity reports from the CPS prior to the conversion.
See snapshot of a sample trust report:
Q21. How can clients who need assistance with remittance processing or plan reporting contact Invesco?
A21. Clients needing assistance with the transition from CPS to RPM can contact Invesco’s Chairman’s Council at 800 776 4246.
Questions Regarding 403(b) and Single 401(k) Accounts
Q22. What action will Single K and Profit Sharing plan sponsors need to take as a result of the transaction?
A22. In our letter to you dated 2/22/19, we indicated that plan sponsors would need to complete a new adoption agreement; however, since then, we have simplified the process to transition these plans to Invesco. No action will be required to transition these plans.
Q23. Will new Single K plans be permitted to be established after the transaction closes?
A23. Following the close of the transaction, Invesco will continue to accept OppenheimerFunds new plan establishment materials for Single K plans that are in progress through June 30, 2019. Invesco offers a similar version of Single K which is called, Solo 401(k). We encourage you to access Invesco’s Solo 401(k) plan establishment materials and discard any Single K materials you may have. Any new plan account establishment materials received for Single K after June 30th, will be returned.
Q24. Will new Profit Sharing plans be permitted to be established after the transaction closes?
A24. Following the close of the transaction, Invesco will continue to accept OppenheimerFunds new account application materials for Profit Sharing plans that are in progress through June 30, 2019. While Invesco will no longer establish new Profit Sharing plans post-close, existing plans will continue to be serviced and supported.
Q25. How will new loans be handled post-close?
A25. New loans taken after the transition will be subject to the Invesco loan policies in effect at the time they take a loan.Invesco will not be able to accept OFI Single K and 403(b) loan applications post-close. Clients should be advised that loan applications submitted to OFI within 2 weeks of the Transfer Date may need to re-submit their application if the loan is not issued prior to the Transfer Date close.OFI call center staff will advise loan applicants of this prior to processing loan requests.
Q26. What are the loan fees for participant loans from 403(b) or Solo 401(k) accounts?
A26. OFI: $75 loan initiation fee, except for 403(b) plans in the state of Texas, for which the loan initiation fee is $50. Invesco: $50 loan initiation fee. In addition, Invesco currently assesses a $25 annual loan maintenance fee each January that the participant loan is outstanding.
Q27. What happens to my clients’ existing loan(s)?
A27. If your clients have an existing loan with OppenheimerFunds, their loan terms and conditions will be unchanged upon the transition to Invesco and their loan fee(s) will not change.
New loans taken after the transition will be subject to the Invesco loan policies in effect at the time they take a loan.
Q28. What will happen to the OppenheimerFunds 403(b) TPA relationships and payroll slots?
A28. Invesco will continue to support the 403(b) business and we are also actively engaging with our TPA partners to ensure a smooth ongoing processing of the payroll slots.
Q29. Will 403(b) TPAs have access to SPARK?
A29. Yes. OppenheimerFunds is working closely with Invesco to transition our TPA partners as seamlessly as possible to SPARK information sharing and remittance. We will be communicating with our impacted TPA partners to facilitate any adjustments to their processes.
Questions Regarding Share Class Options
Q30. Are there differences in the availability of Class R shares between OppenheimerFunds and Invesco?
A30. Class R shares are currently available at Invesco for 403(b) plans and qualified plans, including the Solo K product. Invesco does not make Class R shares available for any IRA-based plans or accounts including Traditional, Roth, SEP and SIMPLE IRAs. Current OppenheimerFunds shareholders that purchase Class R shares in IRA-based plans will be grandfathered and they can continue to make purchases into Class R. No new IRAs may be established with Class R shares at Invesco post-close.
Q31. Will there be changes to Class C shares for OppenheimerFunds accounts that transition to Invesco?
A31. Yes. As a result of the transition, all Oppenheimer funds will adopt the Invesco C to A Conversion Feature for automatic conversions from Class C shares to Class A shares. Class C shares held for ten years after purchase are eligible for automatic conversion into Class A shares, except as otherwise noted in each fund’s prospectus. This will include legacy OppenheimerFunds C share assets transitioning to Invesco that have been held for ten years or longer. The first conversion of Class C shares for these OppenheimerFunds accounts will occur on June 26, 2019 and continue monthly thereafter.