Alera Group, Vestwell unveil retirement solution for small businesses
Alera Group is partnering with Vestwell to launch a workplace retirement plan solution designed for organizations with fewer than 100 employees.
“We see a tremendous opportunity to provide retirement solutions to an underserved plan sponsor and participant population that deserves access to features and solutions typically found only in larger plans, whether that be internally here at Alera Group across our Insurance and Employee Benefits client base or externally,” said Christian Mango, executive vice president and national practice leader of the Retirement Plan Services division at Alera Group.
The partnership with Vestwell is designed to lower costs and administrative burdens while streamlining the fulfilment of fiduciary duties compared to traditional options in the market.
“We are proud to power Alera Group’s workplace savings platform focusing on serving the underserved as part of Alera Group’s growth,” said Aaron Schumm, CEO and founder of Vestwell. “We designed the Vestwell platform to address pain points plaguing the savings industry and help deliver the leading solution in a scalable, efficient manner.”
The Alera Group solution bundles ERISA 3(38) investment governance and an advisor managed account solution utilizing Franklin Templeton’s Goals Optimization Engine.
“We’re seeing a clear acceleration of retirement plan advisors aligning with the retirement plan industry to achieve the benefits of size and scale,” said Mango. “This program is about our commitment to deliver industry-leading advisory offerings to provide advisors with the best solutions in the industry. Collective success requires a technology-forward approach, which we’re proud to offer in partnership with Vestwell and Franklin Templeton—rearchitecting retirement plans to be easier, customizable and delivered at a fraction of the cost.”
The SPARK Institute elects new board positions
The SPARK Institute announced that Joseph Smolen, executive vice president of Core & Institutional Markets at Empower, has been elected governing board chair. He succeeds Kevin Collins, former head of Retirement Plan Services and now head of U.S. Intermediaries at T. Rowe Price.
“SPARK serves as a true thought leader and advocate for the entire workplace retirement system. This system is the result of a tremendous public and private partnership and SPARK gets credit for leading the way toward better retirement policy,” said Smolen. “I’ve worked with Kevin for several years as a member of SPARK’s Governing Board and learned a lot from his leadership. I am honored to now move into my new role as the Chair of the SPARK Governing Board and look forward to continuing SPARK’s tradition of advocacy for the retirement system and the millions of retirement investors who depend on it to help create future financial security for their families.”
Todd McGrath, managing director and COO at Corebridge Financial Retirement Division, has been elected vice chair and will support Smolen in helping guide SPARK’s Governing Board. “I look forward to working with Joe and contributing to the great work this organization does for our industry,” said McGrath.
Michael Miller, managing director, head of DC Solutions, PGIM, has been elected treasurer and will succeed William Byerly, EVP, general manager, FIS Global. “
The SPARK Institute is managed by a Governing Board of twelve firms represented by: Allspring Global Investments, Ameritas Life Insurance Corp, Ascensus, BlackRock, Corebridge Financial, Empower, FIS Global, J.P. Morgan Asset Management, Lincoln Financial Group, PGIM, SS&C Technologies, and T. Rowe Price.
Equitable announces leadership appointments
Equitable has named Jim Kais as the head of its Group Retirement business, effective April 1, 2024.
Kais will report to Nick Lane, president of Equitable, and join the company’s Operating Committee. Kais succeeds Jessica Baehr, who was recently named president of Equitable Investment Management.
“With nearly three decades of experience, Jim is a proven and respected leader in the retirement industry with a strong track record of transforming and growing businesses,” said Lane. “He deeply understands what plan sponsors need to help their employees build secure financial futures, whether they are public school administrators or small business owners. Jim is the right leader to help us build upon our privileged legacy of serving educators and help us grow our position in the small business retirement plan market.”
In this role, Kais will be responsible for the strategy, product portfolio, client experience and financial results for Equitable’s Group Retirement business, including its tax exempt 403(b) and 457 businesses and the small business 401(k) market.
Prior to joining Equitable, Kais served as head of Retirement Plans at Ameritas. He has also worked at Transamerica for more than a decade, where he held several leadership positions, including senior vice president for the company’s Retirement practice. Prior to Transamerica, he held various roles at ADP TotalSource, Prudential, and Merrill Lynch.
Kais serves on the advisory board for the SPARK Institute and on the Retirement Plans Committee of the American Council of Life Insurers. He earned a bachelor’s degree in economics and business Administration from Ursinus College and holds the FINRA Series 6, 63 and 26 securities registrations.
Company veteran Jessica Baehr, who served as the head of Group Retirement since 2021, has assumed a new leadership position as the president of Equitable Investment Management. Baehr will continue to serve on Equitable’s Operating Committee and report to Chief Investment Officer Steven Joenk. Equitable Investment Management is the registered investment adviser for the 126 portfolios that underlie Equitable’s variable insurance products, retail mutual funds and suite of model portfolios.
Baehr first joined Equitable in 2011. Her previous leadership roles also include serving as the chief operating officer for the company’s Life and Employee Benefits businesses and head of Investor Relations for Equitable Holdings. Prior to Equitable, Baehr started her career in the non-profit sector working in higher education and international development. She earned a bachelor’s degree in international studies with a focus on Russian and Eastern European studies and a master’s degree from Fairfield University.
NewRetirement raises $20 million in Series A funding
NewRetirement, a digital financial planning platform for consumers and enterprise partners, announced that it has closed its Series A round with $20 million in funding. The round was led by Allegis Capital and joined by Ulu Ventures, Nationwide Ventures, Fin Capital, Frontier Venture Capital, Cameron Ventures, Marin Sonoma Impact Ventures, Northwestern Mutual Future Ventures, Plug and Play Ventures and Motley Fool Ventures, bringing the company’s total funding to $20.8 million.
NewRetirement is a digital tool that allow users to build and manage their own financial plan, and include additional factors such as human capital, benefits, pensions, Medicare, Social Security, home equity, taxes, decumulation, estate planning and more. The platform currently has 70,000 active users who manage close to $100 billion dollars.
Employer plan sponsors and plan providers can offer NewRetirement’s planner, calculators, and educational classes to their employees, while wealth managers, banks, and insurance companies can utilize the company’s APIs, planner, calculators, and advisor tools to develop a white-labeled or co-branded platform.
“NewRetirement has emerged as a valuable platform for financial services firms and workplace retirement plans, and we’ve been impressed by their rapid adoption among enterprise clients,” said Stuart Doane, General Partner at Allegis Capital. “We are proud to back Stephen and the NewRetirement team as they leverage technology to meet these unmet market needs.”
With its Series A funding, NewRetirement will expand its enterprise offerings, scale onboarding and support for partners, enhance R&D efforts, and integrate LLMs and artificial intelligence (AI) to its platform.
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