In this week’s corporate roundup, Mercer’s 401(k) and pooled employer plan hit $3.6 billion in assets under management, Principal names a new COO, and Ascensus announces a lead to its Enterprise Solutions business.
Mercer 401(k) and PEP Top $3.5B
Mercer today announced that its Mercer Wise 401(k) and Mercer Wise pooled employer plan (PEP) have reached a combined USD $3.6 billion in US plan assets under management (AUM).
Mercer Wise 401(k) and Mercer Wise PEP, launched in 2017 and 2021 respectively, are outsourced retirement plan solutions that seek to improve participant outcomes while reducing plan sponsors’ administrative duties and fiduciary risk.
The Mercer Wise platform has 80 US-based employers, with employee bases of 350 to over 5,000. Together, the plans provide 401(k) benefits to more than 70,000 employees in the US.
“Through the Mercer Wise platform, we are helping employers offer competitive financial wellness benefits and improve retirement plan coverage for their employees, all while potentially reducing plan costs and participant fees that allow employees to save more over time,” said Holly Verdeyen, Mercer’s US defined contribution leader.
Empower, which serves as the recordkeeper for the Mercer Wise 401(k) and Mercer Wise PEP plans, recently conducted a study, “Time is Money,” which found that half of Americans think they are running out of time to save for retirement. Additionally, only 22% of Americans are keeping track of their ability to retire and nearly half (48%) worry about how they’ll pay for expenses once they are no longer working.
“People who have access to workplace plans tend to start investing for retirement earlier and save more. This puts them in a better position to replace their pre-retirement income,” said Joseph Smolen, Empower’s executive vice president for Core and Institutional Markets. “With Americans living longer than ever before, employer-sponsored retirement plans are a critical component of helping millions of Americans prepare for retirement.”
Principal Appoints New COO
Principal Financial Group has named Deanna Strable, executive vice president and current chief financial officer, as president and chief operating officer. Dan Houston will continue to serve as CEO and chairman of the Board.
“Deanna has been instrumental in driving strategy, financial results, and operations to enable Principal to grow and continue to create value for our customers, shareholders, and employees,” said Houston. “Her appointment as president and COO reflects her extensive experience and proven leadership within the organization, and I am excited to continue our strong partnership.”
In this new role, Strable will have direct responsibility for the three businesses of Principal – Retirement and Income Solutions, Benefits and Protection, and Asset Management. Strable has served as CFO since 2017, after previously serving as president of the company’s workplace benefits and insurance business. She joined Principal in 1990 as an actuarial assistant and has held actuarial and management roles throughout her career.
“In my nearly 35 years at Principal, I’m more confident than ever in our ability to deliver value and grow sustainably to continue to serve our customers and meet the expectations of our shareholders,” said Strable. “I look forward to the opportunity to further contribute to our ongoing success in this new role.”
As part of this transition, Joel Pitz, senior vice president and controller, will serve as interim chief financial officer. Pitz has been with Principal for nearly three decades, holding senior executive finance roles across the company, including serving as CFO for the international pension and long-term savings business. His deep expertise in financial management and his comprehensive knowledge of the company’s operations make him well suited to oversee financial functions at Principal during this period.
Ascensus Names Enterprise Solutions Lead
Ascensus has appointed Michael Dunn to lead its Enterprise Solutions line of business, effective September 4.
As president for the Enterprise Solutions business, Dunn will report to Ascensus President Nick Good and join the company’s Operating Committee executive team. Dunn succeeds Kurt Laning, who joined Ascensus through the Newport merger in 2022 and retired earlier this spring.
Enterprise Solutions is a provider of unbundled and outsourced nonqualified retirement plan administration services and provides a broad array of industry leading solutions and expertise, including corporate- and bank-owned life insurance consulting and administration, and fiduciary and total rewards consulting services. It serves institutions of all sizes, including more than 40 percent of Fortune 500 companies.
“Mike Dunn is a highly experienced and respected leader in our industry and the ideal person to lead our Enterprise Solutions business into the future,” said Good. “He brings both relevant and diverse experience to his new role and a deep understanding of the corporate and institutional insurance marketplace. We look forward to welcoming his judgment and industry perspective to our leadership table and decision making.”
Dunn most recently was head of Institutional Insurance with MassMutual Financial Group.
After earning his bachelor’s degree in mathematics and herman from Hamilton College, Dunn received a master’s degree in finance and international business from the University of Connecticut. He also holds CLU and ChFC designations from The American College of Financial Services, and FINRA’s Series 6, 26 and 63 licenses.
Dunn will be based in the company’s Newton, Massachusetts, office.
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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.
