After a four month process of requesting, receiving and reviewing proposals from five different banks, The Arc Oregon Board of Directors has chosen Key Private Bank to serve as the new OSNT Trustee. The transition is already underway and is expected to be complete by January 1, 2016. As you know, Union Bank has been the legal trustee and investment advisor for the OSNT since the trust’s inception back in 1999. The search for a new trustee was undertaken because we felt that there were some administrative improvements that could be made, and we were especially interested in reducing the bank fees that are charged to every beneficiary’s trust account.
Key Private Bank was chosen because of the multiple value-added services that they offered in addition to a significant reduction in fees. Some of the changes that trust clients will see next year as a result of this change are:
- Reduced fees (see below)
- Monthly statements with more user-friendly, detailed accounting
- Continued online access for those who access that service
- Deposits posted to the bank on the same day as received in our office
- Similar turn-around time for disbursements: Requests processed on Tuesdays and checks mailed on Thursdays
- Earlier receipt of annual tax documents!
- New Master Trust Agreement and Joinder Agreement documents
The day-to-day operation of the trust will continue to be administered by The Arc Oregon, and you will continue to access your trust account just as you always have.
New Trust Documents
With this transition comes new 1st party and 3rd party Joinder Agreement documents and a new Master Trust Agreement. Please click the links to view the new documents, or visit our Forms and Documents page.
NOTICE TO ALL POOLED TRUST PARTICIPANTS: Pursuant to sections 4.3 and 4.4 of the Master Trust Agreement dated July 20, 1999, The Arc Oregon has appointed Key Bank National Association as the new Trustee of the Oregon Special Needs Trust. The Master Trust Agreement has been amended and dated November 25, 2015. The Joinder Agreement has been amended to reflect the new Trustee and Master Trust Agreement. All changes to the Joinder Agreement apply to all current pooled trust participants and all previously executed Joinder Agreements are immediately deemed to be amended accordingly. You are encouraged to review the new Joinder Agreement documents posted on the Forms and Documents page of The Arc Oregon website. Upon your annual review date, you will receive an Updated Joinder Agreement and will be required to sign and return the document when requested. Please do not hesitate to contact our office if you have any questions!
Effective January 1, 2016, the following fee schedule will be in place for trustee/investment management fees (all other fees remain the same). This new bank fee structure will result in a savings of approximately 30% off current Union Bank fees. Remember, fees are charged based on the total amount of assets in the pooled trust account, and then pro-rated across all funded subaccounts.
- .95% on the first $1,000,000
- .75% on the next $2,000,000
- .55% on the next $2,000,000
- .45% on assets over $5,000,000
As an example of the potential savings, current fees charged annually on $15,000,000 in assets is $114,000. Under the new fee structure, that same annual fee would be only $80,500! Although we have been applying bank fees on a monthly basis this past year, we will return to the previous schedule of quarterly fee deductions.
In addition to the great service and fees that we expect as a result of this change, Key Bank and its employees are dedicated to serving non-profit organizations around the country. Some things that you may not know about Key Bank:
- Key Bank entered the market in 1985 by acquiring Bank of Oregon and Beaver State Bank, and soon thereafter acquired Pacific Western Bank in 1986.
- In 2014, Key Bank generated $571,000 in donations to 55 Oregon nonprofit organizations.
- In 2014, 52 employees served on 66 nonprofit boards.
- On KeyBank’s Neighbors Make The Difference® Day, more than 6,000 employees in 13 states, from Maine to Alaska, volunteer to help make a difference in their respective communities, for a total 24,000 volunteer hours. In the past 25 years, Key employees have given more than half a million volunteer hours through Neighbors Day.
- Key Bank has consistently received an Outstanding rating for its compliance with the Community Reinvestment Act. Fewer than 10% of financial institutions in the United States are awarded the Outstanding rating, which is based on an institution’s level of lending, investments, and service within the low- and moderate-income communities in which they have a market presence.
We are very happy about these positive changes and we hope that you will be too! More information will be provided in the next newsletter, but you are welcome to call our office anytime if you have any questions.