Capital Group and Voya announced today they are teaming up to provide Target Date Plus as a Qualified Default Investment Alternative (QDIA) option for Voya Financial’s retirement plan solutions.
“We’re pleased to leverage our technologies and solutions to support the Target Date Plus service and help facilitate the opportunity for greater retirement outcomes for plan participants.”
Voya Financial’s Amy Vaillancourt
Target Date Plus, powered by Morningstar Investment Management LLC, is a target date service that offers personalized asset allocation tailored to a retirement saver’s specific needs and objectives by incorporating key recordkeeper data points, including age, salary, retirement plan balance, employee and employer contributions.
The fee-based service, now available to eligible Voya workplace retirement plans, will offer participants a QDIA that blends American Funds Target Date Retirement Series, or MyCompass American Funds Series that are trusteed by Great Gray Trust Company, LLC, with Morningstar Investment Management’s experience to deliver personalized allocations through its user interfaces.
“Capital Group is excited to work with Voya to offer a personalized target date service that leverages the American Funds glide path to better reflect investors’ retirement goals,” said Brendan Mahoney, Head of Institutional Retirement Strategic Growth at Capital Group. “We realize too many people are still not saving enough for retirement, so it’s incumbent we provide simple and effective solutions designed to meet the evolving needs of hard-working Americans striving for a secure financial future.”
“At Voya, our focus remains on offering plan sponsors and advisors the level of choice and flexibility needed to help plan participants reach their retirement goals,” added Amy Vaillancourt, senior vice president, Workplace Product Development and Architecture at Voya Financial. “We’re pleased to leverage our technologies and solutions to support the Target Date Plus service and help facilitate the opportunity for greater retirement outcomes for plan participants.”
Last July, Voya also announced it is serving as the recordkeeper for the Secure Retirement 403(b) Pooled Employer Plan (PEP) launched by The Platinum 401k, Inc., the first 403(b) program to the market following the SECURE 2.0 legislation. That PEP, which includes American Funds Target Date Retirement Series as the QDIA option for participants, was created in response to the SECURE 2.0 Act and is designed to provide a pooled plan option specifically to 501(c)(3) nonprofit organizations and health care-related entities, broadening retirement plan access for employees within these industries.
SEE ALSO:
• Voya Launches Managed Account Specialist Team to Advance Education and Growth
• First 403(b) Pooled Employer Plan Launches Post SECURE 2.0
• Benartzi’s PensionPlus Partners with Capital Group, American Funds
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
