Deals and People June 7, 2017

Ascensus Acquires Cash Balance Leader Kravitz

Kravitz will keep its focus on cash balance plans, with Dan Kravitz maintaining a senior leadership role.

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Service and technology provider Ascensus announced the acquisition of Kravitz Inc., an independently owned retirement administration firm and cash balance plan specialist.

Kravitz, founded in 1977, designed its first cash balance plan in 1989 and has since grown into what many describe as the nation’s cash balance plan leader. The firm offers training, education and support on cash balance plans to its clients and an extensive network of financial advisers and third-party administrator (TPA) partners. Employing 85 individuals, it services more than 1,400 clients with retirement plans.

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During a recent conversation with PLANSPONSOR, Raghav Nandagopal, executive vice president of corporate development and mergers/acquisitions at Ascensus, said the firm is charging full steam ahead on the goal of rapidly building scale, partly through organic growth but also through rapidly paced mergers and acquisitions.

As a result of the acquisition, Ascensus will serve approximately 50,000 retirement plans. Kravitz will maintain its focus on cash balance plans, with Dan Kravitz continuing in a senior leadership role.

“Kravitz is renowned for its cash balance plan expertise, market leadership and client focus—we’re excited for its team of actuaries and retirement plan professionals to join the Ascensus family,” says Shannon Kelly, Ascensus’ president of retirement. “Cash balance plans are sophisticated and complex retirement plans that require a superior level of actuarial acumen; under Dan’s ongoing leadership, we anticipate extending our company’s growth into the mid-market segment.”

“The Kravitz team is looking forward to becoming part of Ascensus and continuing to help our clients save for a more secure retirement,” says Kravitz. “Our clients, employees and industry partners can expect us to keep providing state-of-the-art plan design and expert administration while remaining dedicated to our values of innovation, accountability and integrity.”

Products June 7, 2017

Nationwide Tool Gathers Workers’ Data to Locate Their Savings Gaps

Including information from outside sources, the Retirement Readiness Report projects a clearer picture of participants’ retirement outlook.

 

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Estimating retirement income needs can be a daunting process, which requires evaluating and projecting multiple factors. According to a study by the Employee Benefit Research Institute (EBRI), less than half of participants have even attempted this process. In response, Nationwide is offering a Retirement Readiness Report.

The tool aims to provide participants with a total picture of their retirement outlook by gathering data as to their potential Social Security and pension benefits, as well as spousal assets and other external retirement savings. After answering a few questions, participants will be provided with a look at potential income gaps along with suggested solutions such as increasing contributions, reviewing investment options or speaking with a financial professional.

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“Nationwide understands the retirement challenges America’s workers face, and has the expertise and experience to help them address those challenges,” says Eric Stevenson, senior vice president of retirement plan sales for the company. “This report, along with the educational services Nationwide provides to participants, helps simplify the retirement income picture so participants can quickly see and understand their unique situation.”

Nationwide notes that the report utilizes a fully responsive mobile design, making it accessible through various devices.

Later this summer, the company will begin offering additional plan-level reports to plan sponsors and advisers to help them better measure the retirement readiness of the participants they work with.

Stevenson added, “Nationwide has a long history of supporting its plan sponsor and adviser clients with the tools, resources and digital capabilities they need to help participants prepare for and live in retirement. The Retirement Readiness Report is another example of our commitment to improving the retirement planning process through customized support.”

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