Even though pension risk transfer is better understood by plan sponsors, LIMRA hopes pending legislation that would open multiple employer plans to more employers will create an opportunity for greater plan access.
Emerging data from a new LIMRA report studies awareness and interest in Pension Risk Transfer (PRT) transactions and multiple employer plans (MEPs), given the growing challenge among plan sponsors in funding retirement plans.
The LIMRA Secure Retirement Institute (SRI) study reports eight in 10 private-sector defined benefit (DB) plan sponsors—that are also offering a defined contribution (DC) plan—have at least minimal interest in PRT. Four in 10, however, are saying they have a high interest in the feature. This attention towards PRT has gone up considerably since 2014, from 32% of employers reporting an interest up to 44% in 2019. According to the study, half of all employers with frozen DB plans would like to offer PRT products, while 39% of those with active DB plans are curious about them.
While PRT transactions continue to gain momentum, MEPs are just growing traction in the plan sponsor community, largely due to the recent attention towards the Setting Up Every Community for Retirement Enhancement (SECURE) Act of 2019. Just 36% of all employers are somewhat or very familiar about MEPs, and only 29% of small employers with fewer than 50 workers understand the term, according to Dave Levenson, president and CEO of LIMRA. However, given recent participant reaction towards MEPs and new legislation from the SECURE Act, Levenson is hopeful employer awareness will swing upwards.
“From an employee perspective, they want the benefit of a plan, but from an employer perspective, they’ve got concerns about costs in the administration,” he says in an interview with PLANSPONSOR. “But they’re not really aware of these MEPs, which hopefully the new piece of regulation will create a big opportunity for the industry.”
The SECURE Act was first introduced in the House of Representatives earlier in the year, and gained wide attention due to its similarity in core provisions with the Retirement Enhancement and Savings Act (RESA), one being the creation of open MEPs. It’s since been passed by the House and is now awaiting Senate approval following the summer recess.
Should the SECURE Act pass through the Senate and be signed into law, Levenson believes the industry will likely see greater awareness surrounding MEPs among small employers who typically cannot afford the cost in offering a retirement plan. Currently, LIMRA findings show that if eligible, 56% of U.S. employers would consider providing a MEP.
“Employers generally want to offer plans, but there’s challenges,” he says. “A MEP creates a lot of opportunities for employers, especially to employees who don’t have access to plans.”
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.
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.
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 namedKenneth Shimbergas 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,” saysBrian 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 twoIvyLeagueendowments 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 ofMercer’sNot-for-Profit Institutions team. Prior to that, he worked at theBrown UniversityInvestment 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 thePrinceton UniversityInvestment Company.
Shimberg has a bachelor’s degree in management science with a concentration infinancefrom theMassachusetts Institute of Technology and is a CFA charterholder.
