This week, we saw new partnerships among several organizations, along with an acquisition from Mercer Advisors and the latest hire announcement from Pentegra.
TIAA and RCH partner on new consortium
TIAA is joining Retirement Clearinghouse, LLC (RCH) in a new consortium that aims to help America’s underserved and undersaved workers—especially minorities, women and low-income workers—improve their retirement outcomes.
The consortium, known as the Portability Services Network, LLC (PSN), will help workers automatically move smaller retirement savings in 401(k), 401(a), 403(b), and 457 accounts to their new employers’ plans as they change jobs.
“Forty percent of American families are at risk of running out of money in retirement, and the issue is even more dire for women and minority communities,” said Thasunda Brown Duckett, president and CEO of TIAA. “As an industry, we have an obligation to close the retirement savings gap and ensure more people can secure their financial futures. Though we have a long way to go, this industry consortium enabling auto portability is an important step toward helping more Americans hold on to their money during their professional journeys, so they have the option to turn their savings into lifetime income when they stop working.”
“We welcome TIAA’s decision to join us in our ongoing effort to help all American workers save more for retirement,” said Robert L. Johnson, chairman of The RLJ Companies and Chairman of Portability Services Network and Retirement Clearinghouse. “The Portability Services Network provides the means for millions of Americans, and especially minorities, to achieve a financially secure retirement simply by keeping and protecting more of what they’ve earned during their working lives.”
The PSN consortium is meant to serve as a utility to retirement savers with the goal of operating at the lowest cost to workers participating in auto portability and is open to all recordkeepers to connect. More information on the consortium can be found here.
Upwise partners with Savi on student loan debt education
Upwise from MetLife has teamed up with Savi, a social impact technology company, to help borrowers navigate available federal loan forgiveness programs.
Launched in 2021, Upwise is MetLife’s personalized financial wellness app providing features and expert content to help individuals build healthy financial habits. Integrating Savi’s capabilities into MetLife’s solution enables individuals to take a holistic view of their personal finances and understand how student loan debt impacts their financial health. This includes assessing their eligibility for relief, and exploring repayment and loan forgiveness options, all while improving their relationship with their finances.
“The weight of student loan debt can take a toll on employees’ financial and mental health – from prioritizing monthly loan payments over other financial goals to potentially feeling stressed and anxious about the amount of debt,” said Ellen Pedersen, vice president and head of product, Upwise, in a statement. “The addition of Savi’s student loan expertise to the Upwise experience enables borrowers to more easily navigate the complex and overwhelming Public Service Loan Forgiveness process.”
The collaboration is meant to not only simplify the application process for federal loan payment and forgiveness programs, but also provide clarity and confidence to individuals navigating the stresses of federal student loans and monthly repayments.
“With President Biden’s debt forgiveness plan preparing to make its way through the Supreme Court, and loan payments set to resume later this year, navigating student loan repayment can feel overwhelming and uncertain,” said Aaron Smith, co-Founder of Savi.
With Savi’s integration and at no cost, employers can offer Upwise as a solution for eligible employees to take immediate action towards reducing their student debt – which may help to increase their financial security and freedom in stride.
Mercer Advisors acquires Pennsylvania wealth management firm
Mercer Global Advisors, Inc. is acquiring Andesa Financial Management, Inc., a wealth management firm in Allentown, Pennsylvania.
Andesa was founded in 2004 by Paul C. Barbehenn and later joined by Michael C. Baittinger in 2006. Barbehenn, Baittinger, and the rest of the Andesa team serve 260 clients with assets under management (AUM) of approximately $330 million.
Commenting on the transaction, Barbehenn stated, “[Mercer Advisor’s] comprehensive ‘family office’ approach to client care with in-house services like estate planning, tax consultation and tax return preparation, etc., adds the depth and breadth of service we were looking to bolt on, while allowing me and my team to offload burdensome back-office work so that we can focus on what is most important – our clients.”
Dave Welling, chief executive officer of Mercer Advisors, added, “The business combination between Mercer Advisors and Andesa is a perfect cultural fit with both firms anchoring on financial planning. We are thrilled they are joining the Mercer Advisors team and bolstering our significant presence in Pennsylvania and the Eastern region. We look forward to working together to help deliver meaningful results for our shared clients.”
Pentegra adds new SVP and general counsel
Pentegra has named Kevin Finnegan as its senior vice president and general counsel.
In his role, Finnegan will oversee Pentegra’s legal and compliance teams. He succeeds Robert Alin, who retired at the end of March. He will report to Pentegra President and CEO, Eric Wietsma.
“As we continue to advance our growth, Kevin’s sophisticated legal experience and knowledge of the business made him a natural addition to our team… His expertise will strengthen Pentegra as we continue to expand our fiduciary footprint and will be instrumental in advancing our business priorities,” said Pentegra President and CEO Eric Wietsma.
Finnegan spent much of his career at MassMutual, where he served as lead counsel of tax and ERISA and head of workplace and institutional solutions law, prior to the sale of MassMutual’s retirement business to Empower. Earlier in his career, Finnegan served as vice president and counsel at Pentegra.
He holds a Master of Law’s degree in taxation from the New York University School of Law, and a juris doctor degree from Quinnipiac University School of Law.
SEE ALSO:
- Corporate Roundup: Andy Sieg Heads to Citi, Ascensus and Voya Partnership
- Corporate Roundup: Pentegra and Ascensus Hires, Morningstar Awards
- Corporate Roundup: Ameritas and iJoin Moves, IRI and UBS Community Projects
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.
