Empower and Milliman, Inc. today announced they have entered into a definitive agreement for Empower to acquire Milliman’s retirement administration business for a total consideration of $340 million.
The transaction is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions. Until the transaction closes, Empower and Milliman’s administration business will continue to operate as independent businesses.
“This acquisition represents another important step in Empower’s vision of delivering integrated workplace solutions that help people build wealth, protect it and ultimately retire with confidence.”
Empower President and CEO Ed Murphy
In a press release today, Empower said the acquisition will add significant expertise, broader capabilities and an expanded workplace solutions portfolio to Empower’s existing business.
“The addition of Milliman’s defined benefit capabilities strengthens our ability to serve the evolving needs of the 20 million investors we support, the 93,000 retirement plan sponsors we serve and the financial advisors who help clients navigate increasingly complex financial decisions,” said Edmund F. Murphy III, President and Chief Executive Officer of Empower. “This acquisition represents another important step in Empower’s vision of delivering integrated workplace solutions that help people build wealth, protect it and ultimately retire with confidence.”
Milliman is retaining its retirement and healthcare actuarial consulting business and expects to enter a strategic partnership with Empower following the close of the transaction.
“As we considered the next chapter for this business, it was important to find a partner with scale, commitment to the future of retirement and benefits administration, and the long-term vision necessary to continue serving our broad range of clients,” said Dermot Corry, President and CEO of Milliman. “We chose Empower because of its leadership position in retirement services and its ability to offer an enhanced range of services to our customers while providing excellent career opportunities for our employees. This transaction allows Milliman to sharpen our focus on our consulting, data analytics and AI businesses.”
What the deal does for Empower
The acquisition will expand Empower’s capabilities in the defined benefit marketplace and advance the company’s strategy of delivering integrated workplace benefits solutions that help employers support employees throughout their financial lives, the Denver-based recordkeeper said in today’s release.
The transaction will add specialized defined benefit administrative expertise and capabilities to Empower’s existing retirement, wealth management, stock plan and consumer-directed healthcare offerings, creating a more comprehensive suite of workplace financial solutions for employers, plan sponsors, advisors and individual investors.
The transaction also includes more than 800 employees who will join Empower to provide a comprehensive suite of retirement and administration services to financial professionals, plan sponsors and participants.
At closing, Empower expects to acquire approximately 400 defined benefit plans representing approximately 790,000 plan participants and approximately $80 billion in assets under administration. Empower also expects to acquire more than 1,100 defined contribution plans representing approximately 750,000 participants and more than $50 billion in client assets. Empower will also acquire 100 health and welfare administration clients with approximately 100,000 plan participants.
Strategic partnership
Following the close of the transaction, Milliman and Empower expect to establish a strategic relationship for actuarial services and defined benefit plan administration. Under this arrangement, Milliman and Empower would become preferred service providers in select actuarial services and defined benefit administrative opportunities generated by each firm’s respective business activities.
Today’s release noted that defined benefit plans continue to play an important role in the U.S. retirement system, helping employers attract and retain talent while supporting retirement readiness and income security. Demand remains particularly strong among governmental employers, professional services firms, healthcare organizations and closely held businesses. Modern designs such as cash balance plans have experienced significant growth as employers seek additional tools to improve retirement preparedness and workforce planning.
The release said the acquisition reflects Empower’s continued investment in building a workplace solutions ecosystem that connects retirement savings, retirement income, equity compensation, healthcare savings and wealth management solutions. By bringing these capabilities together, Empower said it aims to help employers deliver more holistic financial wellness programs and improve long-term financial outcomes for employees.
The transaction represents the latest step in Empower’s growth strategy. Over the past decade, Empower has expanded its capabilities through strategic acquisitions, including Personal Capital, MassMutual’s retirement business, Prudential’s full-service retirement business and Plan Management Corp. (OptionTrax).
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