Deals and People September 6, 2019

Retirement Industry People Moves

Parametric names director of Liability Driven Investment Strategies; Large and mega market regional directors join Transamerica; Strategic Investment Group selects managing director for relationships team; and more.

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Art by Subin Yang
Art by Subin Yang

Art by Subin Yang

Economic Group Pension Services Acquires Actuarial Firm

Economic Group Pension Services (EGPS), Inc., has acquired actuarial consulting and pension administration firm, Professional Pension Planners, Inc. based in Ardsley, New York, as of April 1.   

“As we continue to move forward with our projected growth, we are excited to bring on an organization that has the same values in which we stand by. Their qualities and expertise connect with what EGPS represents in having a strong and personal relationship with our clients,” explains Daniel Liss, chief executive officer.

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Fred Harrison, previously president of Professional Pension Planners, Inc. is now regional vice president for the Ardsley, New York regional office for EGPS. Mark Sadoff, previously vice president, is now a consulting actuary for EGPS.

Parametric Names Director of Liability-Driven Investment Strategies

Parametric Portfolio Associates LLC, an affiliate of Eaton Vance Corporation, appointed David Phillips, CFA, as director, Liability Driven Investment Strategies. Working closely with the Overlay Solutions and Fixed Income teams, this new role supports the recently announced strategic initiative to strengthen its leadership positions in rules-based, systematic investment strategies, customized separately managed accounts and wealth management solutions.

Phillips focuses on helping clients with modeling pension liabilities, provides expertise on liability-driven investment (LDI) management, and builds and manages relevant fixed income models. Based in Seattle, Phillips joined Parametric on July 29, and reports to Justin Henne, CFA, managing director of Investment Strategy.

“As Parametric deepens and expands its institutional relationships and fixed income offerings, David brings extensive background in designing LDI strategies, providing risk analytics and creating related thought leadership,” says Henne. “He will be instrumental in providing greater insights to our LDI clients and their consultants.”

Phillips was previously director, Client Strategy and Research/Risk Analytics at Russell Investments, where he was responsible for research, development and analysis of investment strategies for defined benefit (DB) plans and evaluating risk for plan sponsors. His prior experience includes serving as manager, Client Services at NISA Investment Advisors, where he provided pension liability expertise for the firm’s clients, and director, Asset Management for Celanese Corporation, where he led global pension investment activity.

He holds a bachelor’s degree in mathematics from the University of Wyoming and a master’s in mathematics from Oregon State University. He has an actuarial background and holds enrolled actuary (EA) and associate of the society of actuaries (ASA) designations.

Large and Mega Market Regional Directors Join Transamerica

Transamerica announced that Stefanie Signorello and Matt Hummel have joined the company as regional directors for mega/large market retirement plans.

In their roles, both Signorello and Hummel will manage relationships with retirement plan clients in large and mega markets and will drive market-facing and customer service strategy, while developing and maintaining strategic relationships with financial intermediary partners.

Signorello holds a bachelor’s degree from Stonehill College, and she will work with plan sponsors in New England. Hummel holds a bachelor’s degree from the University of Delaware and is based out of New Jersey. Both Signorello and Hummel will report to Christopher McTague, senior director of Client Engagement for the mega/large market segments at Transamerica.

“We are happy to have Stefanie Signorello and Matt Hummel bring their years of experience to Transamerica. Stefanie is well-known in New England as a knowledgeable and committed collaborator with plan sponsors and their financial advisers. Matt has a long track record of success and has established himself as an innovator of meaningful client solutions,” says M. Palmer Whitney, senior vice president of Client Engagement for all market segments at Transamerica. “We are very excited to have them join our team. I have every confidence both of these individuals will add to Transamerica’s momentum.”

TPA Relationships Director Moves to Securian

Industry veteran Matt King has joined Securian Financial as national third-party administrator (TPA) relationships director for the company’s retirement solutions division.

Based in West Hartford, Connecticut., King is responsible for developing a TPA program focused on strategic relationships, superior service and innovative solutions. 

Prior to joining Securian Financial, King served as TPA relationships director for The Standard and director of TPA sales support for Transamerica. He holds FINRA Series 6, 26 and 63 registrations, and earned a bachelor’s degree from Saint Michael’s College in Colchester, Vermont. King has served on the National Institute of Pension Administrators (NIPA) board of directors since 2016 and is currently CFO. 

“I believe deeply that all great TPA relationships are based on connection, commitment and conviction,” says King. “I am excited about joining the Securian Financial family to create a unique and memorable TPA experience.”

Strategic Investment Group Selects Managing Director for Relationships Team

Strategic Investment Group named Kenneth Shimberg as managing director on the Relationship Management team. Shimberg joins a team of six senior professionals with an average of 27 years of industry experience dedicated to partnering with Strategic’s 28 clients.

“Ken is an exciting addition to our team,” says Brian Murdock, president and chief executive officer of Strategic Investment Group. “He brings a wealth of investment expertise in both private and public markets, as well as deep knowledge of institutional investors. His experience both within the investment offices of two Ivy League endowments and as an outsourced chief investment officer position him well to work with our clients as a trusted adviser and partner.”

Shimberg joins Strategic from Mercer Investment Management where he was the chief investment officer of Mercer’s Not-for-Profit Institutions team. Prior to that, he worked at the Brown University Investment Office for 14 years, ultimately serving as managing director and acting chief investment officer, where he co-led the 19-member investment office team managing the University’s endowment and related financial assets. Previously, he co-managed the global private investment portfolio at the Princeton University Investment Company.

Shimberg has a bachelor’s degree in management science with a concentration in finance from the Massachusetts Institute of Technology and is a CFA charterholder.

Administration September 6, 2019

Help for Employees Falling Behind on Retirement Savings

Educating employees about the power of time on their savings, encouraging them to log into their retirement plan accounts and starting them at a higher deferral rate are some ways employers can help boost employees' retirement savings.

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In 2018, 19% of Ascensus plan participants who used its online Retirement Outlook Tool found that they were on track for a successful retirement. In fact, across all generations, the outlook is rather grim, but it is especially challenging for those younger than 25. Of all savers who were “on track” to meet their goals, only 3% of those younger than 25 fell into this group.

Only 21% of  “on track” savers were between the ages of 25 and 24, 20% were between 25 and 44, 24% between 45 and 54, and 26% between 54 and 65.

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As to what plan sponsors can do to rectify this dismal situation, Rick Irace, chief operating officer for Ascensus’ retirement division, says, “to start, plan sponsors should focus on educating employees on the fundamentals of their plan” the benefits of enrollment, including matching contributions if they’re offered. For younger generations of employees, many plan sponsors and financial advisers also find it useful to highlight why it makes sense to start saving now, even if it’s at a very modest rate. Many plan providers, including Ascensus, provide educational tools and calculators that illustrate to these younger employees the clear advantages of putting time on their side.”

Irace says digital tools can also be helpful, such as a mobile enrollment app. He adds that after first-time users of Ascensus’ Retirement Outlook Tool used it, they increased their savings to 8% within three weeks. So, helping people assess where they stand and how their current savings is projected to turn into retirement income can help, Irace says.

Even something as simple as logging into their 401(k) account can prompt a participant to improve their outlook, he says. “A saver who logged into our participant website at least once in 2019 shows an average 401(k) account balance 25% higher than a saver who has not logged in since 2018, 46% higher than one who has not logged on since 2017, and 67% higher than one who has not logged on since 2017.”

Richard Rausser, senior vice president at Pentegra says plan sponsors should automatically enroll and automatically increase deferrals for participants in the plan. Rather than starting at a 3% deferral rate, Pentegra recommends 6% and has found that a mere 5% to 7% of participants opt out at this rate. “Starting at 3% is selling employees short,” he says.

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