Deals and People March 26, 2021

Retirement Industry People Moves

Northern Trust Front Office Solutions adds new leaders; Klinefelter Wilson rejoins Groom; and The Hartford rejects acquisition offer From Chubb. 

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Art by Subin Yang
Art by Subin Yang
Art by Subin Yang

Northern Trust Front Office Solutions Adds New Leaders

Northern Trust Front Office Solutions has added Nichole Mann as head of operations administration and Nora Tiller as head of client solutions.

Front Office Solutions is an integrated, cloud-based service and data platform that enables investment offices to view and analyze data from disparate sources across all asset classes in one central repository. It serves complex asset owners including foundations, endowments, family offices, pensions and outsourced chief investment officers (OCIOs) with the data they need, in the format they need it, enabling them to make informed decisions that help them excel at their strategies and optimize performance.

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“Complex asset owners have complex portfolios. In addition to demanding great technology, our clients deserve high-touch services delivered by industry experts, especially those who have walked in the shoes of our clients,” says Melanie Pickett, head of Front Office Solutions. “Adding Nora and Nichole to our already talented team deepens the service we deliver to our clients and allows us to offer the thought leadership and expertise our clients demand.”  

As head of operations administration, Mann will be responsible for functions including operational data governance, data quality and process oversight, policy development, and data analysis. Prior to joining Northern Trust, Mann worked at several U.S.-based hedge funds where she managed business unit control, valuation control and documentation, operational risk management, and financial reporting and management. She formerly served as a vice president with Morgan Stanley where she focused on credit derivatives and structured credit products.  

Tiller, as head of client solutions, will match resources with client needs, assessing team development and further developing the client servicing model. Tiller comes to Northern Trust from Georgetown University, where she served as director of investment operations for the university endowment, managing investment accounting, performance analytics, risk measurement, financial reporting and compliance. She previously served as managing director of financial accounting and compliance at Red Cross Investments, and as manager of finance and administration at Howard Hughes Medical Institute.

Klinefelter Wilson Rejoins Groom

Jeanne Klinefelter Wilson, who led the Department of Labor (DOL)’s Employee Benefits Security Administration (EBSA) from 2017 until earlier this year in the roles of acting assistant secretary and deputy assistant secretary, has rejoined Groom Law Group as a principal, serving as counsel to plan sponsors and plan fiduciaries in its plan sponsor group.

She has had nearly 30 years of experience working with employee benefit plans since her first job as an employee benefit plan auditor with a major public accounting firm. She has served as ERISA [Employee Retirement Income Security Act] counsel for more than 20 years. Her practice extends to all types of employee benefit plans, including both qualified and non-qualified retirement plans and welfare plans.

At the DOL, Klinefelter Wilson took a hands-on approach to management by serving as a member of the regulatory, exemption, outreach and enforcement teams. She has in-depth knowledge of the regulatory process and the role that each level of the executive branch plays in that process. Her inside view on all steps of the DOL investigation and enforcement approach allows her to provide unparalleled advice to clients facing a DOL investigation. She also has significant experience in the DOL prohibited transactions exemption process as a result of her tenure at EBSA.

Klinefelter Wilson left the DOL when Ali Khawar was sworn in as principal deputy assistant secretary of the EBSA on January 20.

Khawar is currently the acting agency head. He has extensive government experience and has previously served in a variety of roles at the DOL, including as an EBSA investigator, in EBSA’s Office of Enforcement, as EBSA’s chief of staff in two administrations, and as a counselor to the 26th secretary of labor, Thomas E. Perez. Khawar has a bachelor’s degree from Johns Hopkins University and a law degree from Emory University School of Law.

The Hartford Rejects Acquisition Offer From Chubb

The Hartford has announced that its board of directors, after consultation with its financial and legal advisers, has unanimously rejected Chubb Limited’s unsolicited proposal to acquire The Hartford.

Chubb presented The Hartford with a proposal for a combination of the two companies on March 11. Soon after, The Hartford announced its board was carefully considering the proposal.

The Hartford said its board determined that entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders. The board reaffirmed its commitment and resolve in the continued execution of The Hartford’s strategic business plan.

Benefits March 26, 2021

Employers and Employees Can Benefit From Understanding Medicare

Medicare only covers several types of medical costs for retirees, not including premiums and deductibles. Experts say it’s time for both groups to learn what that means. 

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Many people younger than 65 who are preparing for retirement think Medicare will cover their health care expenses once they retire. But that’s not always the case.

Medicare—which is administered by the Centers for Medicare & Medicaid Services (CMS) and is part of the Department of Health and Human Services (HHS)—is a national health insurance program that began in 1966 as a solution to provide health insurance coverage for those 65 and older.

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While the program covers several types of medical costs, it doesn’t include everything. Additionally, experts note, retirees are responsible for paying premiums and deductibles. This could result in retirees paying hundreds of dollars a month just to have the benefit.

“The premiums aren’t always zero dollars,” says John Barkett, senior director of policy affairs for Willis Towers Watson in Washington, D.C. “For example, you have to pay a Medicare Part B premium, which varies depending on your income, but for most people is about $140 a month.

“And that’s just when you become eligible for Medicare,” he adds.

Employers can step in to educate their employee base—and especially those nearing retirement—on the elements of Medicare coverage and what they will likely pay. Sources say providing education on the basics of Medicare terminology—such as Part A, B, C and D— and on additional savings benefits such as Medicare Advantage and Medicare Savings Programs (MSPs) can help participants map out their future health care costs.

“It really is important to start at the beginning,” notes James Jiang, the co-founder and CEO of Spark Advisors, a brokerage firm that partners with independent advisers to serve those navigating retirement benefits and Medicare. “Make sure that people have basic awareness of Medicare and all the various programs available.”

Experts recommend plan sponsors and their employees learn the ABCs of Medicare. According to eHealth Insurance, a private online marketplace for health insurance, Medicare Part A largely covers hospital expenses including inpatient hospital care, nursing facility care, hospice services and limited home health care. Medicare Part B, on the other hand, provides medical insurance and covers outpatient care, mental health services, lab tests, doctor visits, medical equipment and preventative services.

Aetna Medicare solutions provides a downloadable chart highlighting what Medicare Parts A and B (together, also known as Original Medicare) cover.

Medicare Advantage Plans, also known as Part C, are offered by private companies approved by Medicare. As Aetna’s research explains, these plans are serviced by private insurance companies and often include dental, vision or hearing services, prescription drug coverage and/or fitness club memberships. A Medicare Advantage plan offers at least the same benefits as Parts A and B.

Similar to Medicare Advantage, Part D is also offered through a network of private insurance companies approved by Medicare and is primarily used to fund a retiree’s prescription drug plan.

Medicare health care coverage is complex, and it’s even more convoluted for the average pre-or-current-retiree. In fact, it’s fairly common for an employee who is approaching age 65 to contact their employer and ask questions about Medicare, Barkett notes, adding that plan sponsors need to be prepared for that.

“Understand the rules and provide every source for employees to get more information on what they should be considering while they’re still working and when they are approaching Medicare age,” he says.

Jiang adds that plan sponsors should consider speaking with a financial adviser or providing a Medicare expert to host on-site or virtual meetings. Such experts can answer questions on when to claim Medicare benefits and whether enrolling into Medicare Advantage or a Supplemental Savings Plan is the right move for a particular employee.

“There is a huge advantage in bringing in a trusted adviser and someone who is really working for the employee,” he says. “There is an advantage to working with an adviser who is building a long-term relationship with the employee and is committed to doing basic education and ensuring these issues are top of mind for people as they enter Medicare eligibility.”

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