Let’s run some retirement plan numbers, just released by Empower Retirement: The company said it has added approximately $100 billion in assets under administration and 3,000 plans to its platform in the 12-month period ending Sept. 30, 2021.
The $100 billion in AUA represents funded organic sales, and Empower now serves the retirement needs of some 12.6 million Americans. Assets from the new clients helped increase its defined contribution retirement plan platform to more than $1.1 trillion of assets under administration. In total, the 3,000 new retirement plans comprise more than 925,000 participants.
“The role of workplace retirement plans continues to develop and financial wellness and professional advice are rising in importance for many employers who sponsor retirement plans.”
Empower CEO Ed Murphy
In an Oct. 20 statement, Denver-based Empower Retirement, the nation’s second largest retirement plan provider, said request-for-proposal activity in the last year has been higher than any previous year across plan types including 401k, 457b and 403b defined contribution plans of all sizes covering corporate, government and not-for-profit employers.
“As we move out of the pandemic, we are hearing from a lot of employers who want to improve the overall financial benefits that they are offering their employees,” said Empower President and CEO Edmund F. Murphy III. “The role of workplace retirement plans continues to develop and financial wellness and professional advice are rising in importance for many employers who sponsor retirement plans.”
New clients to serve
Empower has seen success in the corporate 401k segment where its offer to mega and large plan sponsors—”combined with superior service levels,” the company said—has helped retain 99% of its existing retirement plan clients. In 2021, Empower has added 10 clients sponsoring retirement plans with more than $500 million in AUA.
Examples of recent new 401k clients include Wisconsin-based Oshkosh Corporation, a maker of heavy vehicles and equipment; financial consultant Clifton Larson Allen located in Minneapolis, building supplier Builders First Source of Dallas, and not-for-profit health care network Essentia Health of Duluth, Minn.
In addition, medical, life sciences and industrial equipment maker Olympus Corporation, with U.S. headquarters in Center Valley, Penn. and energy utility Cleco Corporate Holdings of Louisiana have recently renewed with Empower.
Empower’s government markets segment, which is the leading provider of 457b and other types of workplace savings plans for public sector employers, serves public workers in some 4,600 plans, including 24 state retirement plans. In total Empower’s governments markets segment administers a total of $130 billion in assets.
Later this year, the Colorado Public Employees’ Retirement Association (PERA), which is comprised of three defined contribution plans which hold assets in excess of $5 billion for some 95,000 Colorado public employees, will migrate to Empower.
Empower’s advisor-sold business, which encompasses plans with up to $50 million in AUA, has added some 2,600 plans since Sept. 30, 2020.
Empower says its organic growth is driven by several factors, including the increasing scale and scope of its business to accompany a much wider set of retirement plans. The company said it is constantly enhancing its offer to meet the financial needs of millions of retirement plan participants and individual investors through the active pursuit of innovative technologies, enhanced customer service and new talent.
Empower pairs its DC offering with a best fit for each client need through a single sign-on, integrated participant experience through which multiple vendors serve up such benefits as employee stock purchase plans or defined benefit offerings. In addition, Empower offers in-person managed accounts, health savings accounts (HSAs), and a student debt solution.
Financial wellness focus
Empower recently launched a personalized financial wellness digital experience that can help employees address the goals that are most important to them. The new digital experience builds on the company’s historic success in driving participant behavior through the presentation of personalized decision tools.
The new offering can integrate the elements of any individual’s financial picture to help them better understand their current financial situation and future needs, driving increased financial confidence. Such elements as estimated retirement income, net worth, savings, spending and debt are presented in a simple interface helping individuals and financial advisors better understand progress toward many different financial goals, such as preparing for a secure retirement, paying off debt or establishing emergency savings.
The new digital experience brings together, for the first time, the combined experience and technology of both Empower and Personal Capital, a registered investment adviser acquired by Empower in 2020.
SEE ALSO:
• Empower to Acquire Prudential’s Full-Service Retirement Biz for $3.55 billion