Deals and People March 3, 2017

Retirement Industry People Moves

Milliman hires Employee Benefits senior consultant; USI Insurance acquires Carolina First Associates; Westminster Consulting hires senior consultant; and more.
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GW&K Appoints New Partners

GW&K Investment Management (GW&K), an investment management firm offering active equity and fixed income investment solutions, has named Robert L. Gray, James M. McCarthy, and Brian T. Moreland as partners of GW&K. 

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“We are very pleased to have Bob, Jim and Brian as partners of the firm,” says Harold G. Kotler, chief executive officer and chief investment officer. “In an investment environment that continues to change and present new challenges, we are happy to have professionals of their caliber help us provide a broad spectrum of top-tier investment solutions and resources for our clients. We look forward to their continued success.” 

Since joining the firm in 2001, Gray has developed many of GW&K’s strategic distribution relationships and serves as head of national accounts. He earned his bachelor’s degree from Denison University.

McCarthy, who joined the firm in 2003, is director of GW&K’s client service group and has managed key relationships in the firm’s Private Client business. He earned a bachelor’s degree from Marist College, and a master’s degree in finance from Boston College. He has also earned the CFA designation, and is active in several industry organizations including the CFA Institute and the CFA Society Boston.

Moreland joined the firm in 1998 and he serves as a portfolio manager for the municipal bond team and as a member of GW&K’s Investment Committee. He graduated from Boston College with a bachelor’s degree in finance and earned the CFA designation. He participates in many industry organizations including the Boston Municipal Analysts Forum, the National Federation of Municipal Analysts and the CFA Institute.

NEXT: Milliman Hires Employee Benefits Senior Consultant

Milliman Hires Employee Benefits Senior Consultant

Jeffrey Nipp has joined global consulting and actuarial firm Milliman as a senior consultant in its Employee Benefits unit. He will be tasked with evaluating, researching, constructing, and monitoring multi-asset class portfolios, with an emphasis on public pension plans. Nipp has more than 30 years of experience having worked for Invesco, BlackRock, Watson Wyatt and Towers Perrin.

"Jeff is a valuable addition to the Employee Benefits practice at Milliman with a varied range of experience that will be an asset to the firm,” says Rich Wright, principal at Milliman. “He has a proven track record of successfully meeting clients' needs and is widely respected in the industry. We're excited to have him join our team."

Nipp says, "I'm thrilled to join an organization that places such a high value on independence and excellence. This role will allow me to focus on producing the best results for clients, and to do so at a firm which has a reputation for thoughtful analytical work that is second to none in the industry."

NEXT: USI Insurance Acquires Carolina First Associates

USI Insurance Acquires Carolina First Associates

USI Insurance Services (USI) has acquired Carolina First Associates, an employee benefits insurance adviser. Carolina First Associates and its employees will remain at their current location in Hickory, North Carolina. Terms of the transaction were not disclosed.

"Since 1980, Carolina First Associates has built its reputation on helping businesses navigate the intricacies of evaluating and purchasing employee benefit plans, wellness programs and employee education and communication strategies,” says James W. Dunn, USI Southeast regional chief executive officer. “Their consultative approach to cultivating long-term relationships aligns perfectly with the USI ONE Advantage and we are thrilled to welcome Sam and his team to USI. We look forward to continuing to invest in the Carolinas and to bringing our game changing approach for delivering solutions to clients, associates and local communities."

Samuel E. Rhodes, principal and owner, Carolina First Associates, adds: "Our depth of experience in the ever-changing era of health care reform has helped us to understand and overcome the high costs and limited options faced by most businesses. With this acquisition, our clients will continue to enjoy this high touch, specialized customer care, but now they can tap into USI's expanded suite of employee benefits, retirement consulting and personal risk solutions. We are excited to be joining a nationally recognized company and to playing an important role in growing USI's footprint in this strategic growth marketplace."

NEXT: Westminster Consulting Hires Senior Consultant

Westminster Consulting Hires Senior Consultant
 
Matt Barber has joined Westminster Consulting as a senior consultant. He will lead the firm’s new business unit Westminster Workplace Solutions, which is dedicated to providing advice and guidance services to retirement plan participants.

Before joining Westminister, he served as wealth adviser and founder of Barber Financial for more than 10 years. He earned his bachelor’s degree from SUNY Fredonia, where he majored in business. Barber has received the industry designation of Accredited Investment Fiduciary (AIF).

Westminster Consulting provides fiduciary advice, counsel, and investment analysis to boards of directors, trustees, investment committees, and more.

Data and Research March 2, 2017

Most Workers Want Access to DC Plans

A new study by LIMRA indicates most workers prefer to save for retirement through their employers, and they value key features of DC plans.
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More than 50 million American workers have no access to an employer-sponsored retirement plan, according to the Bureau of Labor Statistics, but a survey by the LIMRA Secure Retirement Institute found 61% of these employees are more likely to save for retirement if they had access to one.

Most workers (75%) prefer to save through their employers. And while workers understand the individual need to save for retirement, 53% said they believe employers should be required to offer retirement plans, and 60% believe employers should contribute to their employees’ retirement plans. The same percentage believes the government should require employers to offer retirement savings plans. However, workers expressed the least confidence in the federal government to administer these plans, with only 11% saying they were “very confident” in letting Washington run their retirement savings. The federal government’s myRA program has only gathered about 20,000 participants thus far.

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And in the midst of federal and regulatory battle over implementation of the fiduciary rule, 71% of workers agreed it was either very important or somewhat important “knowing that the plan’s investments have been made with my best interests in mind.”

Respondents also said it’s “very important” or “somewhat important” to have a variety of investment options (89%), the ability to take out a loan in case of emergency (77%), the option to invest more than $5,000 per year (84%), the ability of the employer to contribute to their employees’ accounts (89%), and access to educational meetings and materials about the plans (84%).

These are key features of defined contribution (DC) plans. However, only 46% of employers offer these types of plans, according to the Bureau of Labor Statistics. The department’s data also shows that only 58% of civilian workers and 62% of private-sector workers have the opportunity to save for retirement via a DC plan.

“Improving access to worksite retirement savings plans is a critical step in improving retirement security and opportunities for workers,” says Deb Dupont, associate managing director for LIMRA Secure Retirement Institute. “Workers who have the convenience of being able to save for retirement from a payroll deduction are more likely to save than those who don’t. Previous research showed that among those with access, 83% are regularly saving for retirement, while among those without access, only 21% are regularly saving for retirement.

“While simple payroll deduction programs to an individual retirement account (IRA) are a start, as we’ve heard from surveyed workers, it may not be enough. Eighty-six percent of workers want to have the ability to contribute more than $5,000 a year towards their retirement, and IRAs cap contributions at $5,500, only slightly more than the figure we named. In 2016, the maximum contribution limit for IRAs and Roth IRAs was less than a third of the DC plan contribution limit. DC plans have the structure to meet the needs and desires of the modern-day worker.”

The latest results are based on an online survey of 2,498 full- and part-time workers conducted in June 2016. Instructions on accessing the full study “Workers and Retirement Programs: What Are They Thinking?” can be found at LIMRA.com.

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