Deals and People January 27, 2017

Retirement Industry People Moves

Paychex adds LPL Financial’s Employee Advice Solution; Custodia Financial adds staff to Retirement Loan Eraser Program; Fiduciary Investment Advisors expands Retirement Practice; and more.
Reported by
Paychex Adds LPL Financial’s Employee Advice Solution
 
Paychex’s 401(k) recordkeeping clients supported by LPL Financial now have access to LPL’s Employee Advice Solution (EAS). This online system provides plan participants with tailored financial advice and education, the firm says.

The EAS can help employees digitally visualize their entire financial pictures, and they can elect to receive advice throughout retirement. Individuals also have access to advisers who can help them personalize their retirement savings strategies.

Paychex points to a study by Morningstar which showed that participants who received professional online advice for retirement planning increased savings rates by nearly 28%, and 87% of respondents acted on recommendations to save more.

Get more!  Sign up for PLANSPONSOR newsletters.

“Paychex is committed to providing 401(k) participants with the tools and education they need to navigate the retirement planning process with ease, flexibility, and service at every step,” says Tom Hammond, vice president of corporate strategy and product management at Paychex. “The ability to offer plan participants access to financial advice from LPL Financial is another way Paychex focuses on helping our retirement services clients optimize this important employee benefit.”

EAS adds to the suite of tools and services that Paychex offers through LPL’s employee Worksite Financial Solutions. The worksite offers retirement guidance, education, and managed accounts. Enrollment in Worksite includes LPL Small Market Solution, which Paychex began offering to its customers in 2016. The Small Market Solution is designed to help advisers and plan sponsors met fiduciary requirements, while enhancing efficiency.

NEXT: Amerilife Names New CEO

Amerilife Names New CEO
 
Insurance industry veteran Scott R. Perry has been named CEO of AmeriLife. He will succeed Timothy O. North, who announced his plans to retire last year, and will now serve as chairman of AmeriLife’s Board of Directors.
 
“The life and health insurance industry is facing monumental disruption driven by shifts in demographics, consumer preferences, technology and the regulatory environment,” says Perry. “AmeriLife, with its diverse insurance product portfolio, powerful distribution and advanced technology platform, is well positioned to respond to these changes. I intend to build on the tremendous legacy that Tim and the AmeriLife team created, and further position the company as the first choice and most-trusted insurance provider, serving Americans across the country.”

Perry’s experience in the insurance industry spans more than 30 years which included time spent as chief business officer of the CNO Financial Group in Chicago, and president of Bankers Life. While at CNO Financial, he was responsible for multichannel operations across each of its three insurance subsidiaries: Washington National, Colonial Penn and Bankers Life.

“We are excited to have Scott take the helm,” says AmeriLife Board Member Eric Rahe. “As an industry thought-leader whose intuitive and innovative stewardship have led several insurance and financial institutions to profitable growth, we welcome the perspective he brings to AmeriLife. His experience and implementation of best-in-class practices in market analytics, customer acquisition and agent recruitment will accelerate AmeriLife’s continuing expansion.

AmeriLife specializes in developing, marketing and distributing annuity, life and health insurance solutions.

NEXT: New Sales Consultant Joins The Retirement Advantage

New Sales Consultant Joins The Retirement Advantage
 
Grant Livingston has joined The Retirement Advantage as its regional sales consultant serving the firm’s New England clients.
 
Focusing on retirement plans, Livingston has more than 20 years in the financial and insurance services industry. Before joining TRA, she served as a marketing director for Paragon Alliance Group. He’s also held regional sales director positions with MassMutual, Transamerica and WisdomTree Asset Management.  

"Grant's background in retirement plan consulting will enhance the service and support we're able to provide to our financial advisors and recordkeeping wholesalers in the region," says Craig Mazzini, national sales manager of TRA. "We are thrilled to have him join our sales team." 

Livingston will succeed David Egel, who is retiring at the end of February after a 40-plus year career in the retirement plan industry. With TRA, Egel focused on providing consulting to financial advisers and plan sponsors throughout New England. He is also an attorney and a member of the Massachusetts and U.S. Supreme Court Bar Associations. 

TRA is a third party administrator (TPA) specializing in administration, consultation and compliance of retirement plans for privately held businesses nationwide. The firm services more than 5,800 plan sponsors, 350,000 plan participants and has more than $5 billion in retirement assets under its administration.

NEXT: Custodia Financial Adds Staff to Retirement Loan Eraser Program

Custodia Financial Adds Staff to Retirement Loan Eraser Program

Kim Zimmerman and Kevin Crews have joined Custodia Financial with key roles in the firm’s Retirement Loan Eraser program, a platform designed to help plan sponsors prevent 401(k) loan defaults.

Zimmerman will serve as senior project manager responsible for establishing new users on RLE. With more than 20 years of experience in the retirement services industry, she has held several roles with Fidelity Investments. She earned a master’s degree in business administration from The University of Dallas, and a bachelor’s degree from Westminister College.

Crews joins the firm as operations director overseeing insurance premiums, claims processing, and other factors. Beforehand, he led an administrative unit supporting retirement plans with Newport Group. He brings to his new role a decade of experience in the financial services industry. He earned a master’s degree from Amberton University and a bachelor’s degree in economics from the University of Oklahoma. 

"We are thrilled to have talented professionals like Kim and Kevin join our team,” says George White, executive vice president. “Their experience supporting large clients at leading retirement firms and their unique familiarity with the widespread issue of 401(k) loan leakage will help Custodia move the industry forward to safeguard and protect retirement loans.”

To learn more about RLE, visit Loaneraser.com.

NEXT: Fiduciary Investment Advisors Expands Retirement Practice

Fiduciary Investment Advisors Expands Retirement Practice
 
Tyler Polk has been named partner and senior consultant of Fiduciary Investment Advisors (FIA). Since joining the firm in 2011, he’s served on numerous committees including the defined contribution team and the 403(b) Committee. Polk specializes in advising institutional clients and guiding them through fiduciary liability, plan benchmarking, and participant education planning, and fee analysis.

After joining FIA in 2009 and serving as senior consultant, Michael Chase has been named a partner. He’s versed in portfolio construction, capital markets and governance oversight. Chase chairs the firm’s Endowment & Foundation Committee and is a member of the firm’s Discretionary Investment Services Committee, which is responsible for the oversight and management of the firm’s discretionary investment portfolios. 

Christian Coleman has been named a partner and director of business development and marketing of the firm. Coleman joined in 2008, and he leads FIA’s sales and marketing team.

Matthew Kaminski, CFA, has been named a partner and director, manager research of the firm. Joining the firm in 2009, he now leads the firm’s manager research group and due diligence effort. He’s covered several asset classes during his time at the firm and continues to maintain coverage in fixed income and private equity, and also is a member of the 401(k)/403(b) Strategic Oversight Committee which sees him conducting research on target-date and stable value strategies.

“We are pleased to announce these well-deserved promotions, which recognize the hard work and substantial contributions these individuals have made in helping serve our clients,” saysFIA President Mark Wetzel. “FIA continues to grow in all of our major businesses; advising retirement plans, endowments and foundations, and families, now exceeding $50 billion, and we remain dedicated to providing the highest level of service and advice to all our clients through qualified associates like Mike, Chris, Matt and Tyler.”

NEXT: Segal Group Makes Executive Promotions

Segal Group Makes Executive Promotions

The Segal Group has named John Flynn the firm’s new chief operating officer. Flynn serves as vice president and has lead the East region for the past decade. In his new role, he will oversee the regional Leaders from the East, Midwest, New York and West. Flynn also will continue overseeing Segal Group’s Canadian business.

Senior vice president John Gingell has been named The Segal Group’s chief practice officer. For the past decade, he has lead the firm’s Midwest region. He will now be responsible for the company’s practices spanning health, retirement, and compliance; as well as special practices such as administration and technology consulting, communications consulting, and Segal Select Insurance Services.

Stuart Wohl, a senior vice president, has been named East Region Leader. In the last decade, he has served as East region health practice leader. He joined the firm in 1988, and has also served as Segal’s retiree health practice leader.

Mitchell Bramstaedt was named the Midwest region Leader. Throughout his 24-year span with Segal, this senior vice president has held several Midwest leadership roles while working with large multiemployer and public-sector clients.

“I am excited by what these changes mean for our ability to better serve clients and to aid in growth and professional development opportunities for my Segal Group colleagues going forward,” says David Blumenstein, president and CEO of The Segal Group.

Compliance January 27, 2017

DOL Fiduciary Reform Effort Losing Steam

Advisers and service providers to defined contribution plans have spent millions of dollars pushing toward compliance with conflict of interest reforms that are now expected to be halted by the new administration. 

Reported by

The Department of Labor’s (DOL) fiduciary rule reform effort, more than a decade in the making, seems more likely than ever to finally stall, according to a variety of industry experts called upon to interpret the likely impact of a Trump Administration and the Republican-controlled Congress on the employer-sponsored retirement planning market.

Asked what comes next for the DOL rulemaking, which was technically finalized under the Obama Administration but does not begin to take effect until April 2017, Brad Campbell, Washington-based counsel with Drinker Biddle and Reath, says it’s most likely the rulemaking will be overturned by the new Labor Department leadership.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Campbell, who served as assistant secretary of Labor for Employee Benefits under the Bush Administration, has been in frequent contact with the Trump Administration in recent weeks; he believes the rulemaking will almost certainly be halted before April, but having a Plan B is a good idea for prudent providers, he says. Given that there are many other priorities, such as tax reform, it may take until after the first implementation deadlines in April before the rulemaking can truly be quashed.

“There was a memo circulated recently by the president that has come out seeking to freeze and potentially pull back all ongoing regulatory projects within executive agencies,” Campbell observed, “but I agree with the notion that the DOL fiduciary rule is not really going to be impacted by that memo, because it has already been implemented. While its applicability dates are forthcoming, it is already a properly implemented regulation, and so it is not something that can be just whisked away with the stroke of a pen.”

Campbell notes that the Trump Administration will very likely (and likely very soon) issue a separate order specifically pertaining to the DOL rulemaking, adding “this is likely to occur in the very near future … such an announcement could come any day.”

Based on the conversations Campbell has had, he says it “sounds like right now there is more interest in the administration at looking at a full repeal approach, which would require a proposal, comment and finalization period. We should also keep in mind that none of the people who would lead this effort within the administration have been confirmed yet. Only the Labor Secretary has been formally nominated—many other relevant positions yet to be filled will have to play a role.”

NEXT: What a delay or repeal means for the industry 

James Lumberg, executive vice president of Envestnet, is among the growing number of experts who anticipate some industry providers to charge ahead on implementing stronger conflict of interest controls in their business processes—whatever happens with the formal rulemaking.

Lumberg says that financial advisers and enterprises “realize they have opportunities to provide a fiduciary standard of advice that clients are increasingly expecting.” For Envestnet, this includes “remaining committed to technology enhancement and empowering advisers to capitalize on the fiduciary opportunity and to foster more engaged relationships with clients,” he says.

Lumberg further observes that he is very clearly seeing “massive market and consumer forces” that are reshaping the way advice is being delivered—pushing the entire marketplace toward greater use of flat fee-for-service arrangements.

“Investors increasingly expect that advisers will act in their best interest,” Lumberg continues. “There is a great deal of momentum behind implementing a broader fiduciary standard [regardless of what happens next with DOL]. Aside from evolving regulatory requirements, other market and consumer pressures such as growing client demands for fee transparency, the rise of digital-advice, goal-based investment planning, and product innovations all contribute to an anticipated shift in how advisers of the future will run their businesses.”

Not to mention the significant and accelerating growth in the volume of retirement industry litigation—much of it centered on the very issues the DOL fiduciary rule aimed to correct. According to David Levine, principal with Groom Law Group, the overhanging threat of litigation could do just as much as the DOL rule to keep pushing firms towards great control and transparency.

“The legal angle remains somewhat unclear, but there is also the business reality and the marketing angle of the fiduciary rule implementation,” Levine observes. “People have invested a lot of time and money in preparing for the rule and very few will want to just turn away from that. Some have already sold portions of their business or forged new partnerships to prepare. And so I still believe there will be a wide range of how people move forward. The vast majority will be in the middle, embracing some aspects of the fiduciary rule while resisting others.” 

«