Simplified processes, service continuity and a
focus on financial wellness key to driving client decisions
As Empower approaches the completion of its integration of the
acquired MassMutual retirement business, the company is announcing
key client milestones tied to furthering the success of employers
and retirement investors the company is now serving.
Empower closed its acquisition of MassMutual’s retirement plan
business in December 2020 with the intent of capitalizing on both
firms’ expertise, expanding technological excellence and product
capabilities, and creating scale. A comprehensive integration
program consisting of eight “waves” of plan integrations launched
in mid-2021 is slated to conclude in October.
Key achievements:
Retention results: Through the integration process,
Empower has earned the trust of more than 20,000 MassMutual clients
and 2.3 million participants — a 92 percent participant retention
rate, as of Aug. 31. Empower retained approximately $174 billion in
client assets, or 91 percent. In addition, Empower retained 87
percent of all plans.
“This program was focused on introducing Empower to millions of
retirement investors and their employers and asking them to get to
know us and put their trust in us,” said Edmund F. Murphy III,
president and CEO. “We are grateful for the confidence they’ve put
in us and look forward to earning their business every single
day.”
Murphy explained that for many busy plan sponsors, retirement
plans can be seen as complex but important benefits. Empower’s
efforts to make the process simple for sponsors is a hallmark to
its top retention rates.
A simplified integration: Based on years of retirement
plan integration experience, Empower simplified the requirements
for plan sponsors to move their plan to the company’s recordkeeping
platform. Making use of technology tools that brought new
automation to the process of onboarding new plans, Empower was able
to simplify and economize some phases of plan transition.
“It is an important goal that we don’t ask too much of plan
sponsors. Their HR and benefits teams are busy enough, and we’re
here to serve their needs first,” said Empower president and chief
operating officer Rich Linton. “We firmly believe in keeping the
asks of them to a minimum.”
In addition, Linton said the movement of MassMutual plans from a
multi-platform environment to a single recordkeeping system also
has the potential to economize the administration of the entire
business.
Financial wellness focused: All former MassMutual
retirement plan participants have access to Empower’s financial
wellness-focused participant web experience at the center of their
retirement planning journey. Empower’s site — which is being
launched with all clients this year — offers a comprehensive,
360-degree view of an individual’s financial picture, including all
retirement assets, lifetime income projections, bank accounts,
taxable investment accounts, and liabilities such as mortgages and
credit cards.
“We owe it to the people we serve to provide them with intuitive
financial tools, so they have the opportunity to plan for the
future they deserve,” said Linton. “Everyone has a different story,
different goals, different priorities, and we have created
sophisticated technology supported by human advice that is unique
and personal to every saver and encourages them to take action and
take control of their financial futures.”
“We believe in talking to individuals about money in terms that
they understand,” he said. “And we believe employers find that
incredibly helpful for their workers.”
Service team continuity: Throughout the integration
program, Empower is maintaining client service teams to help
support plan sponsors, third-party administrators (TPAs), advisors
and consultants involved in moving to the Empower platform. The
familiarity between trusted parties helps plans integrate more
efficiently.
“Integrating businesses is a huge undertaking, and maintaining
continuity for our clients has been crucial,” said Linton.
“Bringing together two very experienced teams benefits
everyone.”
The combined firm will continue to serve retirement plans
sponsored by a broad spectrum of employers. These include mega,
large, mid-size and small corporate 401(k) plans; government plans
ranging in scale from state-level plans to municipal agencies;
not-for-profits such as hospitals and religious organizations’
403(b) plans; collectively bargained Taft-Hartley plans; and
nonqualified plans. The transaction also included MassMutual’s
defined benefit business, which is now under the umbrella of
Empower.
Murphy said Empower’s strategic acquisitions have raised its
attractiveness to new clients. Request-for-proposal activity in the
last year has been higher than any previous year across plan types,
including 401(k), 457(b), 403(b) and Taft-Hartley defined
contribution plans of all sizes covering corporate, government,
unions, and not-for-profit employers.
“The talent level in our organization between Empower and former
MassMutual associates is second to none and everyone here is
absolutely obsessed with customer success, and it shows in how well
this integration program has progressed,” said Murphy.
In addition to the MassMutual business, Empower acquired the
full-service retirement business of Prudential Financial in April
2022. Integration of the Prudential business begins in the first
quarter of 2023.
About Empower
Headquartered in metro Denver, Empower administers approximately
$1.2 trillion in assets for more than 17 million retirement plan
participants1 and is the nation’s second-largest retirement plan
recordkeeper by total participants.2 Empower serves all segments of
the employer-sponsored retirement plan market: government 457
plans; Taft-Hartley plans; small, mid-size and large corporate
401(k) clients; nonprofit 403 (b) entities; private-label
recordkeeping clients; and IRA customers. Personal Capital, a
subsidiary of Empower, is an industry-leading hybrid wealth
manager. For more information please visit empower.com and connect with us on
Facebook, Twitter, LinkedIn and Instagram.
1 As of June 30, 2022. Information refers to all retirement
business of Empower Annuity Insurance Company of America (EAIC) and
its subsidiaries, including Empower Retirement, LLC; Empower Life
& Annuity Insurance Company of New York (ELAINY); and
Prudential Retirement Insurance & Annuity Company (PRIAC),
marketed under the Empower brand. EAIC’s consolidated total assets
under administration (AUA) were $1,289.3B. AUA is a non-GAAP
measure and does not reflect the financial stability or strength of
a company. As of June 30, 2022, EAIC’s statutory assets total
$77.2B and liabilities total $74.3B. ELAINY’s statutory assets
total $6.9B and liabilities total $6.7B. PRIAC’s statutory assets
total $82.1B and liabilities total $80.8B.
2 Pensions & Investments 2020 Defined Contribution Survey
Ranking as of April 2021.
On August 1, 2022, Empower announced that it is changing the
names of various companies within its corporate group to align the
names with the Empower brand. For more information regarding the
name changes, please visit empower.com/name-change.
Securities, when presented, are offered and/or distributed by
Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is an
affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and
registered investment adviser Empower Advisory Group, LLC. This
material is for informational purposes only and is not intended to
provide investment, legal or tax recommendations or advice.
Empower refers to the products and services offered by Empower
Annuity Insurance Company of America and its subsidiaries,
including Prudential Retirement Insurance and Annuity Company and
Empower Retirement, LLC. This material is for informational
purposes only and is not intended to provide investment, legal or
tax recommendations or advice.
“EMPOWER” and all associated logos and product names are
trademarks of Empower Annuity Insurance Company of America.
Prudential and all associated logos are registered trademarks
owned by The Prudential Insurance Company of America and are used
under license.
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Stephen Gawlik, Stephen.Gawlik@empower.com, 617-417-4408 Monica
Mendoza – Monica.Mendoza@empower.com