Deals and People January 29, 2021

Retirement Industry People Moves

Prudential selects CEO of U.S. Insurance & Retirement Business and OneAmerica hires regional sales director. 

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Art by Subin Yang
Art by Subin Yang
Art by Subin Yang

Prudential Selects CEO of U.S. Insurance & Retirement Business

Prudential Financial Inc. has appointed Caroline Feeney as CEO of its U.S. Insurance & Retirement Businesses. Feeney will immediately assume the newly created role and will be responsible for driving growth across the consolidated portfolio of U.S. businesses, while ensuring alignment with PGIM, the company’s asset management business.

Feeney’s expanded role will include oversight of group insurance, individual life insurance, Prudential annuities, Prudential retirement, and the retail advice and solutions organization. She will also oversee several enabling functions, including the group charged with enhancing and unifying the service experience for Prudential’s retail and institutional customers in the U.S.

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Feeney most recently served as CEO of individual solutions. Previously, she served as president of Prudential Advisors and president of individual life insurance, and spent time in field leadership roles, providing her firsthand experience with customers and the company’s financial professionals.

Feeney also leads the company’s Women Empowered business resource group and champions women’s financial issues, diversity and professional development both within and outside of Prudential.

In her new role, Feeney will continue to report to Andy Sullivan, executive vice president and head of U.S. businesses for Prudential.

“Caroline’s business savvy, deep industry expertise and people-centric leadership style will help us realize the full potential of our businesses,” says Sullivan. “She is a true ambassador for the Prudential brand and a passionate advocate for our company’s purpose: to make lives better by solving the financial challenges of our changing world.”

Feeney represents Prudential on several boards, including The Alliance for Lifetime Income, and is a member of Fortune’s Most Powerful Women and the National Association for Female Executives’ Executive Roundtable. She also serves as a trustee of Prudential’s Corporate Social Responsibility Oversight Committee, which guides the company’s foundation and its investments.

OneAmerica Hires Regional Sales Director

OneAmerica has hired Chris Browne to build the company’s base in South Carolina as regional sales director.

Browne is focusing on primarily serving core retirement plans. The 18-year industry veteran joined OneAmerica after previously working eight years as a Charleston, South Carolina-based wholesaler for MassMutual Financial Group.

“I was really attracted to OneAmerica because of its industry-known relationship strategy, award-winning client focus and fresh, world-class custom communications,” Browne says. “Combined with its outstanding culture and values, OneAmerica checks all the boxes, and I’m thrilled to be joining the team and enhancing our presence in South Carolina.”

Browne reports to Todd Smiser, east region regional vice president. OneAmerica had a presence already in the Palmetto State through the contributions of wholesaler Chuck Stinson, who also continues to build sales in North Carolina.

“Chris has the experience, energy and enthusiasm to drive results,” says Pete Schroedle, vice president of distribution for retirement services at OneAmerica. “Given all the unprecedented upheaval and challenges in our industry, it’s more important than ever to have someone of his background step up with optimal solutions on behalf of advisers, sponsors and participants.”

Prior to MassMutual, Browne was at John Hancock Life Insurance Co. and at Guardian Life.

Participants January 29, 2021

Public Sector Gen X Workers Face More Outstanding Retirement Plan Loans

Likely feeling the same financial squeeze as their private sector counterparts, the new Public Retirement Research Lab also found they are contributing less to retirement savings.

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Public sector Generation X workers have taken more retirement plan loans than any other age group, according to a recent survey by the Public Retirement Research Lab (PRRL) that measured data in public sector defined contribution (DC) plans.

The survey, which was made in collaboration with the Employee Benefit Research Institute (EBRI) and the National Association of Government Defined Contribution Administrators (NAGDCA), was discussed during a webinar hosted by the PRRL. Jack VanDerhei, research director at EBRI, said the organizations reviewed plans based on age, tenure and plan type, which included 213 457(b), 401(a), 403(b), 401(k) and other public DC plans of state, county, city and subdivision government employees.

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Out of all the age groups (defined as workers in their 20s, 30s, 40s, 50s, 60s, etc.), those in their 40s had the highest number of outstanding retirement plan loans, at 7.3% of the total for all age groups. Only about 1% of workers in their 20s had an outstanding loan, with 4.1% of those in their 30s, 6.1% of those in their 50s and 3% of those in their 60s having outstanding loans.

Findings from the PRRL survey show Gen Xers are also contributing less to their retirement savings than those in most other age groups. The report shows that those in their 40s are contributing a mean rate of 5.5% to their retirement, while those in their 20s are contributing 5.9%. Those in their 50s are contributing an average rate of 6.6% and those in their 60s are contributing 8%. Workers in their 30s are contributing the lowest amount, at 5%.

It is likely that Gen X workers in the public sector feel the same financial squeeze as workers in the private sector, juggling mortgages, children’s education expenses, their own student loan debt and caretaking for elderly parents. It has left some to forgo crucial financial needs such as emergency savings or retirement funds.

A 2019 Schwab Retirement Plan Services study found 42% off Gen Xers surveyed said they are more focused on paying off debt than saving for retirement. Because of this, many in this age group are nervous that they will outlive their savings during retirement.

While Gen X had the highest percentage of workers with outstanding loans, the survey found older workers tend to have a larger loan amount than younger workers. “For those with loans, the older the age, the bigger the loan,” VanDerhei said. “Average loans as a percentage of account balance by age were smaller for younger workers rather than for older workers.”

Workers in their 50s and 60s had retirement plan loan amounts ranging from $7,000 to about $8,500, while workers in their 20s had an average loan amount of $1,680. Those in their 30s had an average loan amount of $3,963, while those in their 40s were borrowing an average of $6,184.

Average loans as a percentage of account balance were smaller for younger workers as well. Those in their 20s had an average loan amount of 10.9% when compared with their account balance. Loans were 14.9% of account balances for workers in their 30s, 16.1% for those in their 40s, 16.6% for those in their 50s and 19.2% for workers in their 60s.

When it comes to total contributions, including any employer contributions employees might receive, those in their 20s largely outpaced workers in all other age groups. These workers have a mean total of 9% of their salary being contributed toward their retirement, with just 6.7% for those in their 30s and 40s, 7.5% for those in their 50s and 8.8% of those in their 60s.

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