Alera Group today announced its acquisition of Fraser Group, a Scottsdale, Arizona-based retirement plan consulting practice led by retirement industry leader and managing director George Fraser.
Fraser Group serves roughly 10,000 401(k) participants in 35 plans with plan assets under advisement of approximately $450 million. Terms of the transaction were not disclosed.
According to a release on the announcement, Fraser and his team will continue their existing roles in serving clients and will combine operations with the retirement plan services division of Benefit Commerce Group (BCG), an Alera Group company. BCG provides services across employee benefits, commercial property, and casualty insurance and retirement plan services.
As part of the acquisition, BCG’s retirement plan services division will now include both BCG 401(k) Advisors and Fraser Group.
Fraser, who was 401(k) Specialist’s 2017 Top Advisor By Participant Outcomes (TAPO) recipient and who was also featured this year in a 401(k) Specialist cover story alongside behavioral economist Shlomo Benartzi, is known for his Pennies on the Dollar® model, aimed at motivating participants to save for retirement by contributing pennies, instead of a set percentage, to retirement accounts.
More specifically, Fraser’s strategy encourages participants to add as little as one penny from each dollar of earnings, and then increase it by a penny each year until it hits at least six pennies of every dollar.
Using this method, research by Benartzi, alongside his team at UCLA, Carnegie Mellon, and Cornell, shows plan participants have saved about 20% more when presented with deferral rates in terms of pennies rather than percentages.
“We know that utilizing the concepts that George and his team have developed will provide the very best service and support to our existing clients and our prospective new clients,” said Scott Wood, managing partner and principal of BCG, in a statement.
“George Fraser is one of the leading lights in the retirement plan industry, and we’re thrilled to welcome him and his team to Alera Group Retirement Plan Services,” added Christian Mango, executive vice president and national practice leader, Retirement Plan Services.
With the acquisition, Fraser hopes to continue developing his practice with Alera Group, all while pushing his Pennies on the Dollar® strategy.
“I believe we are going to create something special, not just in Arizona, but nationally, the ability to change the whole paradigm of how we look at retirement,” Fraser told 401(k) Specialist in an interview. “You can grow your business, but also grow it with the right team members. What I found with Alera Group is this holistic approach to benefits. It’s not about cross-selling, but about cross-serving. I think that’s key.”
SEE ALSO:
- George Fraser and Shlomo Benartzi: The Power of Pennies
- George Fraser’s TAPO Redux: Where Are They Now?
- Corporate Roundup: Alera Group Buys Advanced Capital Group, NewRetirement Becomes Boldin
- Benartzi’s PensionPlus Partners with Capital Group, American Funds
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
