While few could argue the retirement planning industry has
not made tremendous strides in getting people involved in regular savings, fewer
advances have been made in helping individuals transition between jobs or into
retirement, according to a white paper from DST Systems.
The white paper argues there is clearly a need for greater availability
of advice and product in this area, yet providers also feel limited in terms of what they can offer.
“Participants need simplified services to facilitate the
transition between plans or to rollover individual retirement accounts (IRAs),”
researchers argue. “They need continued follow-up to ensure assets are
allocated to meet retirement goals.”
According to DST Systems, recordkeeper and plan sponsor
support is essential during critical transition events that will inevitably
come up during the typical plan participant’s working lifetime. These events include an anticipated or unanticipated job loss, a death or disability in the family, new relationships, the transition to retirement, etc.
“Participants who become eligible for distributions from
their retirement plans face numerous complicated choices—choices they are often
ill equipped to make on their own,” the report explains. “The rollover process
is often complicated, time intensive, and inefficient—resulting in bad
decisions and worse outcomes.”
DST argues the distribution/rollover decision is the point
where participants are perhaps the most vulnerable. In fact, approximately 5%
of participants make the decision to cash out their plan balances when leaving
a former employer—concentrated among those with smaller balances. This state of
affairs “illustrates a need for more participant education about the value of
staying invested in the market and of compounding growth of even small
investments over the long term.”
The report goes on to suggest that, during life-change
events, getting the rollover decision right is of vast importance for
participants’ long-term outcomes.
“The choices participants make have long-term implications
on their retirement savings … For instance, participants could face potentially
serious tax issues if the disbursement of their retirement plan money is handled
incorrectly,” the report warns. “Or, they could move their retirement assets into
investments that are inappropriate for their risk profile and long-term goals.
Others may utilize less effective and more expensive retirement vendors,
accounts, or investment products which could dampen over the long term.”
The current structure of the rollover process does little to
minimize or mitigate these concerns, the DST research concludes. In fact, the existing
“hands-off” rollover model “creates a void of support during a critical
moment of need … Where there should be simplicity and ease-of-use, there is
frustration.”
The report urges providers to commit to innovation in this
area.
“It is largely a manual process that is paper intensive and
rarely streamlined,” the report concludes. “Recordkeepers, plan providers, and
plan sponsors could lead this change to help improve the rollover and roll-in
process.”
Luji
Brock and Brad Feeley have
joined John Hancock Investments as new members of the firm’s institutional
sales team. Brock will serve as managing director supporting John
Hancock’s UCITS business, while Feeley takes on the role of managing director
and ETF specialist.
Brock joined John Hancock one year ago as a vice president and
strategic relationship manager for the firm’s retirement plan services
business. Previously, she served as the UCITS sales specialist for Eaton Vance.
She reports to Todd
Cassler, president of
institutional distribution.
“We’re
confident Luji will be a vital resource for our UCITS business,” says
Cassler. “She will primarily focus on decision makers within Latin
American-focused private banks, RIAs, and wealth management firms. We’re
pleased to welcome her to John Hancock Investments.”
Feeley
will focus on retail and institutional channels at John Hancock Investments,
acting in a specialist capacity with existing salespeople as well as covering
ETF-centric firms directly. Most recently, he was with Guggenheim Investments,
where he sold UITs and ETFs in the Midwest region across a range of channels.
Previously, he served several roles with Invesco. He reports to Michelle
Fuller, managing
director, ETF distribution.
“Brad’s
expertise will prove valuable to us as we continue to build out our ETF product
line amid the strong momentum we’ve already created for this business,”
says Ms. Fuller. “We’re delighted to have him join our team.”
NEXT: CUNA Mutual Retirement Tackles TPA
Market
CUNA Mutual Retirement Tackles TPA Market
CUNA Mutual Retirement Solutions has appointed Bill Riccio as director of TPA
relationship management. He will serve as the firm’s first external hire
for its growing TPA channel.
“Presence in the TPA channel is a critical
component for the long-term strategy for our retirement services business,”
says Chris Phillips, director of
institutional sales. “This new position will
play a key role in executing this strategy.”
Riccio, who joined CUNA Mutual Retirement
Solutions earlier this month, will be building on more than 20 years of
experience in the financial services industry. He will be responsible for
growing TPA relations on a national level. He most recently served as vice
president of sales with Vertical Management Systems (Retirement Revolution).
He’s also worked with United Planners, Retirement Alliance, Charles Schwab and
Vanguard.
“We have a clear focus on fiduciary regulations,
efficiencies and the tools and support needed for our partners, TPAs and advisers
to confidently service the expectations of plan sponsors and their
participants,” says Riccio. “I've joined a passionate group and look forward to
advancing the product and strategic partnerships in the TPA community.”
NEXT: OneAmeirca
Appoints Regional Sales Director
OneAmerica Appoints
Regional Sales Director
OneAmerica has
named Thomas Mitchell as regional sales director for Taft-Hartley services. He will be responsible for business plan development while
supporting multiemployer defined contribution (DC) retirement plan trustees and
their members. Mitchell will primarily be serving the Northeast.
Mitchell joined OneAmerica this month after spending two
decades serving multi-employer labor and union clients for Putnam Investments,
as well as New York Life. He most recently served as strategic relationship
manager for CUNA Mutual Retirement Services.
"Our clients, consultants, advisers, and future
customers will appreciate Tom's breadth of expertise in the Taft-Hartley
market, which allows him to provide high-touch, responsive service, education,
and guidance," says Derek
Pleasants, national director of Taft-Hartley services.
Mitchell climbed to the ranks of vice president after
joining the firm as an entry-level sales representative. He eventually oversaw
the company’s largest retirement plan, a $6 billion / 30,000-member plan
servicing New York City electricians.
"I'm a third generation union guy in my family, and
very committed to this business," says Mitchell. "I've been in it for
over 25 years and really enjoy it."
OneAmerica has been providing services and investment products in the
Taft-Hartley marketplace since 1974 and that specialization increased with the
2015 acquisition of the retirement services business of BMO.
"OneAmerica is one of the few retirement plan providers
to have a dedicated Taft-Hartley team and commitment to the marketplace,"
says Bill Yoerger, president of OneAmerica Retirement Services. "We have
the infrastructure, talent, and experience to service its unique needs so that
at the end of the day union workers understand financial wellness and are able
to retire with dignity."
NEXT: T. Rowe Price
Hires Global Head of Product
T. Rowe Price Hires
Global Head of Product
Andrew Astley has
joined T. Rowe Price Group as global head of product, effective
January 23, 2017. He will collaborate with the firm’s investment and
distribution teams to develop product strategies for U.S. equity, international
equity, fixed income, and asset allocation. He will also focus on developing
and implementing plans for launching new products.
Astley will report to Robert
Higginbotham, a member of the firm's management committee.
Astley spent eight years serving as head of global product
and marketing at State Street Global Advisors (SSGA), and also was the firm’s chief
operating officer for EMEA based in London. As a member of the group’s executive
leadership team, he most recently served as head of integration and transition
during State Street's acquisition of GE Asset Management.
Before joining SSGA
in 1997, Astley worked in a variety of client-facing roles at PanAgora Asset
Management. He graduated from the University of Michigan with a bachelor’s
degree in political science and has also earned the Chartered Financial Analyst
designation.
NEXT: Putnam Investments Creates New Global Institutional
Leadership Role
Putnam Investments
Creates New Global Institutional Leadership Role
Daniel Melley has
joined Putnam Investments in a
newly created role which will see him leading the firm’s efforts in serving
institutional clients and investors throughout Europe, the Middle East and
Africa (EMEA). Based in London,
Melley will report directly to Jeffrey
L. Gould, head of Putnam Global Institutional Management.
“In the coming years, we expect to see an ongoing evolution
of the institutional marketplace within Europe, the Middle East and Africa,
presenting its own unique set of opportunities,” says Gould.
Prior to joining Putnam, Melley served as global head of
consultant relations for Winton Capital, a $30 billion hedge fund. He also
spent 17 years with Mercer, where he served several leadership positions. He
launched his career in the financial services industry after joining Bessemer
Trust in New York in 1996.
A CFA charter holder, Melley graduated from the
University of Notre Dame in 1996 with a degree in finance.
NEXT: Alegeus and Pension Dynamics Announce Partnership
Alegeus and Pension Dynamics Announce Partnership
Alegeus, provider of consumer directed healthcare (CDH) solutions, announced that Pension Dynamics Company LLC, a retirement and benefits solutions provider, has selected the Alegeus platform to power its account-based benefit offerings.
The partnership is aimed at boosting capabilities around flexible spending accounts (FSAs), health reimbursement accounts (HRAs), and dependent care and transit accounts.
According to the firms, the healthcare market is in the midst of a shift toward individual responsibility for costs, which will necessitate that consumers take a more active role in virtually all aspects of their care.
“In much of the same way that company-sponsored pension plans transitioned to more consumer-directed 401ks, health benefits are following a similar path, leading to rapid adoption of consumer directed healthcare accounts (FSAs, HSAs, HRAs),” the firms argue.
NEXT: Putnam
Investments Expands Equity Research Team
Putnam Investments
Expands Equity Research Team
Samuel Cox and Kathryn B. Lakin have been appointed toco-direct the equity research team of
Putnam Investments. They will be responsible for overseeing the work of
nearly 35 analysts covering major industries and providing research for the
firm’s broader equity platform. They will report to Aaron M. Cooper, CIO of equities.
“As a firm that is highly committed to delivering active
management to the marketplace, equity research remains a key engine in finding
new and different sources of investment opportunity,” says Cooper. “We are
pleased to have Kate and Sam, talented leaders with solid equity research
experience, piloting this important function for our organization.”
Cox also serves as a portfolio manager of Putnam Global
Health Care Fund and the Putnam Global Sector Fund. In addition, he will be
joining the Putnam Research Fund team. Prior to joining Putnam in 2012, Cox
served as an equity analyst at Pyramis Global Advisors. Previously, he held
positions with the Rock Creek Group and Cambridge Associates. Cox holds a
master’s degree from the Massachusetts Institute of Technology’s Sloan School
of Management.
Moving forward into her new role, Lakin will maintain her
role as portfolio manager of Putnam Research Fund. In addition, Lakin will join
the portfolio management team of Putnam Global Sector Fund. Previously, Lakin
was assistant director of Global Equity Research at Putnam. She was also an
analyst in the U.S. large cap equity research group, covering consumer staples.
She joined Putnam in 2012 from Fidelity Investments, where she held positions
in equity research. She received a master’s degree candidate in asset
management at the Yale School of Management.
Putnam Investments is a global money management firm with $151
billion in assets under management, as of the end of October 2016.
NEXT: NextCapital Appoints New
CIO
NextCapital
Appoints New CIO
NextCapital, an enterprise digital advice provider, has hired Matt Clink as chief investment officer. He will work with large institutional
partners to implement their methodologies, lead the enhancement of NextCapital’s
proprietary advice methodology, and chair its investment committee.
“NextCapital is at the forefront of helping
large institutions deliver their proprietary advice methodology through 401(k)
and retail channels,” said John
Patterson, CEO of NextCapital. “Matt is a great fit in the CIO role with
our focus on an enterprise partnership strategy. His strong institutional
background brings a deep understanding of our partners’ needs, and he also
clearly sees a unique opportunity to work with those partners to extend the
best quality advice to their end clients.”
Clink will bring more than 17 years of
institutional asset management experience to his new role. Most recently, Clink
served as North American chief investment officer for Aon Hewitt Investment
Services, where he oversaw $50 billion in assets under management. His
specialties include pension consulting, target-date fund solutions, pension
risk management, product design, modeling, portfolio implementation and
advisery solutions.
Clink is a research publisher on a variety of
investment and risk management topics. He also is a Chartered Financial
Analyst, and a member of the Chartered Financial Analyst Society of Chicago. He
holds a master's degree in finance from the University of Alabama at Manderson.
NextCapital
partners with institutions to deliver personalized planning and managed
accounts to individual investors across multiple channels including 401(k),
IRA, and taxable brokerage accounts.
NEXT: Ascensus Acquires National Retirement Services
Ascensus Acquires National Retirement Services
Ascensus, a retirement
and college savings services provider, has acquired independently-owned National Retirement Services, a third-party administration firm that provides-plan level compliance,
administration, and actuarial services.
National Retirement Services,
which employs more than 60 individuals specializing in ERISA and actuarial practices,
supports adviser-sold defined contribution and defined benefit plans for 2,000
clients. Following the acquisition, Ascensus will serve more than 46,000
retirement plans.
“Joining the Ascensus family
is a winning proposition for both our clients and our employees,” says John Sciarra, president and chief executive
officer of National Retirement Services. “We’ll continue
to provide service delivery that ensures accuracy, responsiveness, and
timelines—only now we’ll be backed by the resources of the largest
independent retirement and college savings services provider in the country.”
Ascensus President of Retirement Shannon
Kelly adds, “One of the things that I value most about National Retirement Services, Inc.’s staff is their culture and commitment to integrity and
service excellence. Bringing National
Retirement Services, Inc. into the fold will
expand Ascensus Consulting’s national footprint, which will allow us to offer
our services to more clients who are looking for expert retirement plan design
and administration while ensuring that current clients continue to receive the
care and attention that they deserve.”
This decision comes following
Ascensus’ acquisition of Retirement Educators,
which it announced within the last two weeks.