PGIM’s Defined Contribution Solutions Business continues to build an experienced leadership team with Tuesday’s announcement that Michael Miller has been appointed as the first head of the new business unit.
PGIM, the $1.5 trillion global investment management business of Newark, N.J.-based Prudential Financial, Inc., ranks among the top 10 largest asset managers in the world. As the retirement solutions providers of PGIM, the recently launched DC Solutions subsidiary seeks to capture the opportunity in the Defined Contribution market as income solutions become an increasingly dominant trend over the next 10 years.
“As they mature and evolve, defined contribution plans are ever more critical to ensuring Americans have the income they need in retirement,” said David Hunt, CEO of PGIM. “As the retirement solution providers of PGIM, our new DC Solutions unit has the ability to leverage the capabilities of both PGIM and the wider Prudential organization. I look forward to seeing this business play a transformational role in our industry under Mike Miller’s leadership.”
Miller will report to Linda Gibson, CEO of PGIM Quantitative Solutions. Miller was most recently head of retirement Americas at J.P. Morgan Asset Management, having spent 14 years at the firm. Previously he was vice president, Defined Contribution Investment Only, at Principal Financial Group.
“Mike has a 20-year track record within the retirement industry, is recognized in the DC space as an excellent leader and will complement our thoughtfully assembled team of industry experts,” Gibson said. “This is a significant step in strengthening our position as a leader in delivering diversified, customized retirement solutions, and underpins our commitment to the DC market and to addressing the evolving needs of both retirement plans and retirees.”
“The DC industry is about to see a major secular shift towards the delivery of income as participants start approaching retirement in greater numbers.”
Michael Miller, Head of PGIM DC Solutions
PGIM DC Solutions, a cross-PGIM initiative, is focused on delivering innovative retirement solutions founded on market-leading research and capabilities. It’s built upon the $214 billion of assets managed by PGIM on behalf of DC clients across multiple asset classes and vehicles.
“The DC industry is about to see a major secular shift towards the delivery of income as participants start approaching retirement in greater numbers,” Miller said. “While DC plans have undergone significant evolution, the enhancements have generally been geared towards accumulating wealth for participants prior to their retirement. Many plan sponsors express a desire to keep retirees in their plan, but few offer solutions specifically designed to support retirees’ unique needs and risks they face. I’m excited to join PGIM as we collectively aim to deliver innovative plan design, communications, products and solutions to support workers in their need to meet their lifetime income goals.”
An overview of the new subsidiary on its website says the current DC system is not optimized for solving for lifetime income. “Transformational enhancements are needed in order to bring lifetime income solutions to American workers and retirees. We see a clear path forward. Our 5 key pillars of retirement income will reshape the DC marketplace, giving plan sponsors the ability to provide reliable, lifetime income to their participants.”
Miller joins experienced team
PGIM DC Solutions, a wholly owned subsidiary of PGIM Quantitative Solutions, continues to bring together strong retirement industry talent from inside and outside the firm. In 2021, the firm hired leading retirement research expert David Blanchett as head of retirement research. Blanchett was formerly head of retirement research at Morningstar Investment Management.
Miller will also work closely with Josh Cohen, head of client solutions, who leads the team’s efforts to bring defined contribution insights and solutions to PGIM’s clients and the market. PGIM DC Solutions enhances the firm’s existing DC efforts and will work closely with PGIM’s affiliate businesses including PGIM Investments’ Retirement Investment Solutions (RIS) team.
The team’s expertise spans across plan design and participant engagement, investment best practices, portfolio construction, retirement income, and the regulatory and legislative environment.
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• Empower to Acquire Prudential’s Full-Service Retirement Biz
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
Yep, income as part of a solution set for employee needs is a long time coming. Good to see Mike going where he can get resources to get it done.