Products October 4, 2024

Product & Service Launches

Federated Hermes launches MDT mid cap growth CIT; PGIM partners with iJoin to expand access to PGIM RetireWell Managed Accounts; Security Benefit introduces TopRidge Bonus fixed-index annuity; and more.

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Federated Hermes Launches MDT Mid Cap Growth CIT

Federated Hermes Inc., a provider in active investment management, announced the launch of the Federated Hermes MDT Mid Cap Growth Collective Investment Fund, a strategy for qualified retirement plan investors. The fund pursues capital appreciation by investing in a diversified portfolio of U.S. mid-cap growth companies.

The Federated Hermes MDT stock-selection process utilizes research, technology and daily data from multiple market cycles. It seeks to remove subjective and emotional influences from the stock-selection process.

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The fund is trusteed by Great Gray Trust Co. LLC, a provider of collective investment trusts to the retirement plan market. Through the new CIT, Great Gray will offer retirement plan investors Federated Hermes MDT’s experience in seeking alpha from multiple sources.

“Our MDT strategies have seen continued interest in the retirement market, and we are pleased to offer another vehicle in which clients can access our investment team’s capabilities,” Paul Uhlman, president of Federated Securities Corp, said in a statement. “The new mid-cap growth CIT builds upon our relationship with Great Gray and is another step in growing Federated Hermes’ global investment platform capabilities and bringing our diverse range of investment solutions to institutional investors.”

PGIM Partners With iJoin to Expand Access to PGIM RetireWell Managed Accounts

PGIM, the $1.33 trillion global investment management business of Prudential Financial Inc., and iJoin, a retirement plan technology innovator, announced that PGIM RetireWell managed accounts will soon be available to iJoin-enabled recordkeepers through its Managed Account Program marketplace.

This integration leverages the PGIM RetireWellAdvice Engine in combination with iJoin’s goals-based user experience, portfolio allocation technology and a plan adviser’s investment lineup to enable a more holistic retirement planning journey for plan participants.

Configurable as a plan’s qualified default investment alternative or via opt-in, PGIM RetireWell Managed Accounts creates a personalized retirement strategy based on each participant’s unique data, preferences and goals. Investors can fine-tune their income goal by expressing risk tolerance preferences, as well as considering health-related priorities.

“The PGIM RetireWell Managed Accounts were created to solve for the retirement challenge that American workers face today—transforming savings into an adequate, sustainable stream of retirement income,” Michael Miller, head of PGIM DC Solutions, said in a statement. “PGIM’s highly personalized solution offers the innovation employers need for better retirement outcomes for their plan participants.”

Security Benefit Introduces TopRidge Bonus Fixed-Index Annuity

Security Benefit Life Insurance Co. introduced the TopRidge Bonus Annuity that delivers a combination of a 20% premium bonus, a broad set of index crediting strategies and a cumulative withdrawal option. The TopRidge bonus applies on all premiums received within the first year of the contract.

“We are excited to offer the new TopRidge Bonus Annuity which is packed with features to help financial professionals jumpstart the accumulation potential of clients’ retirement assets, and also offers flexibility in how clients can access their funds via the cumulative free withdrawal rider,” Justin Jacquinot, head of IMO and RIA distribution at Security Benefit, said in a statement.

The cumulative free withdrawal rider with rider charge refund allows clients to withdraw up to 30% of their total premiums without charges or penalties. If a client does not take the 10% free withdrawal, excluding the bonus, it starts to roll up the following year to a maximum of 30% for any 3-year contract period.

The free withdrawals are made without a surrender charge, bonus recapture or market value adjustment. If a partial amount of the free withdrawal is taken, the remaining amount cannot be carried over; however, the cumulative free withdrawal will restart in subsequent contract years.

Franklin Templeton Expands Partnership With Envestnet

Franklin Templeton announced an expanded partnership with Envestnet Inc. to deliver tax-managed, personalized strategies at scale through its Canvas Custom Indexing platform as a component of the previously announced strategic partnership between the firms.

Canvas will be available to Envestnet’s extensive client base of advisers across banks, wealth management and brokerage firms, as well as registered investment advisers.

“The integration of Canvas on to the Envestnet platform is an exciting partnership that allows us to jointly bring more high-net-worth capabilities to the mass affluent investing community,” Roger Paradiso, head of product solutions for Franklin Templeton, said in a statement. “Advisers using Envestnet will now have access to Canvas’ differentiated digital solutions and operational assurance to strengthen client relationships by further personalizing investment management.”

Canvas’ web-based platform allows advisers to create personalized and diversified portfolios with a focus on tax management. Going beyond traditional direct indexing, Canvas is focused on giving advisers more investment solutions, increased control and the tools to scale their businesses.

Ascensus, Financial Wellness Re-up Partnership

Ascensus has extended its relationship with financial coaching and employer-paid benefit provider Financial Finesse.

The recordkeeper will continue to offer Financial Finesse’s services to plan sponsor clients and their participants, according to an announcement. The deal keeps the partnership going beyond its current eight-year span, with the two firms first working together in 2018.

Ascensus integrates Financial Finesse’s offering with its own wellness tools and resources, and it was the first recordkeeper to introduce Financial Finesse’s artificial intelligence-powered financial coach, Aimee, in 2021. In 2023, users who utilized Aimee saw a 60% increase in their overall financial wellness score, according to the firms.

“We’re committed to empowering savers to take control of their financial wellness and prepare for the future, and Financial Finesse has proven to be an effective partner in helping to boost plan engagement and get more savers saving more,” Jason Crane, head of core retirement at Ascensus, said in a statement.

Benefits October 2, 2024

Walgreens Will Offer Student Loan 401(k) Match Program

The retail pharmacy and health care provider will provide 401(k) matching contributions for employees making qualified student loan payments, starting next year.

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Walgreens announced Wednesday the launch of its Student Loan 401(k) Match Program—a benefit for student loan borrowers made available for employers to implement by the SECURE 2.0 Act of 2022.

The new benefit will be available to Walgreens employees in January 2025 and will allow participants to qualify for company 401(k) match contributions as they pay down their student loans.

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A spokesperson said Walgreens is working with a third-party provider to implement the match program but declined to specify which one. According to its most recent Form 5500 filing, the Walgreens Retirement Savings Plan is offered through Fidelity Workplace Services and covers 276,701 employees.

The plan had more than $11 billion in assets as of plan year 2022.

According to the announcement, roughly 30% of Walgreens team members are facing financial debt from education—including more than half of its pharmacy team members. According to the American Association of Colleges of Pharmacy, pharmacists have average student loan debt of $170,000.

“We understand the burden student loan debt places on many of our team members, and this program empowers us to make a lasting impact on their financial well-being,” said Elizabeth Burger, executive vice president and chief human resources officer at parent company Walgreens Boots Alliance Inc., in a statement. “With this new benefit, our team members are no longer faced with the difficult choice between managing their student loan debt and investing in a secure financial future—now they can confidently do both.”

The Walgreens student loan match program treats enrolled team member’s student loan payments as if they were contributions to the company’s 401(k) plan. Walgreens will match eligible student loan payments up to 4% of eligible pay. Employees are generally eligible for employer matching contributions after one year of work and 1,000 hours of service.

Walgreens’ announcement came just after the student loan on-ramp period (which followed the COVID-19 pandemic-era loan repayment moratorium) ended on September 30. Student loan borrowers will now face costly penalties and negative credit score adjustments if they miss payments or make late payments.

Walgreens also offers a Pharmacy Educational Assistance Program, which provides tuition assistance each year when eligible employees are enrolled in a professional pharmacy program while working for Walgreens as a pharmacy intern. For all years combined, the awards can be as much as $40,000, according to the announcement.

In exchange for each award, pharmacy students are required to sign an agreement that includes a one-year work commitment as a registered pharmacist at Walgreens. The total work commitment period is equal to the total number of years for which a pharmacy student receives an award under the assistance program.

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