GREENWOOD VILLAGE, Colo. & CHARLOTTE, N.C.--(BUSINESS WIRE)--Empower Retirement (“Empower”), the nation’s second-largest retirement services provider,1 and Truist Bank today announced they have entered into a definitive agreement that expands and enhances retirement plan services for the heritage SunTrust retirement plan participants and the employers who sponsor them.
Under the agreement, Empower will acquire the heritage SunTrust 401(k) recordkeeping business, which includes approximately 300 retirement plans consisting of more than 73,000 plan participants and $5 billion in plan assets. The terms of the transaction were not disclosed. The transaction is expected to close during the first quarter of 2021.
Empower currently provides recordkeeping services for Truist through its private-label retirement plan unit, Empower Institutional. Because of this long-standing relationship, which spanned more than 20 years, the transition is expected to be seamless and will not require conversions.
“We are excited about the opportunity to provide a smooth transition for these retirement savers and an enhanced customer experience that benefits both retirement plan participants and their employers,” said Edmund F. Murphy III, Empower Retirement President and CEO. “With this transaction, we will continue to expand our capabilities, enhance our financial wellness and advice offerings, and accelerate our value creation for all our stakeholders.”
In addition to the Empower acquisition of the heritage SunTrust 401(k) plan recordkeeping business, Resources Investment Advisors LLC (dba OneDigital Investment Advisors - “OneDigital”) will serve as the advisor to a majority of the plans that Empower will administer.
Empower provides retirement services, managed accounts, financial wellness and investment solutions to plans of all types and sizes. Empower offers an integrated financial technology toolset, a commitment to customer service and an advisor-centric offering that have been the hallmarks of the company’s highly successful retirement plan solutions.
The transfer of the heritage SunTrust retirement business is the latest chapter in Empower’s expansion through acquisitions. On Jan. 4, 2021, Empower announced that it had completed the acquisition of the MassMutual retirement plan business. The acquisition increases Empower’s participant base to more than 12 million and retirement services recordkeeping assets to approximately $884 billion administered in approximately 67,000 workplace savings plans.2
In August 2020, Empower announced it had completed the acquisition of Personal Capital, a registered investment adviser and wealth manager. The combined firm will serve retirement plans sponsored by a broad spectrum of employers. On Sept. 29, 2020, Empower announced that it was acquiring Fifth Third Bank, National Association’s retirement plans, providing recordkeeping and administrative services.
About Empower Retirement
Headquartered in metro Denver, Empower Retirement administers approximately $710 billion in assets for more than 9.4 million retirement plan participants as of Sept. 30, 2020.3 It is the nation’s second-largest retirement plan recordkeeper by total participants.1 Empower serves all segments of the employer-sponsored retirement plan market: government 457 plans; small, midsize and large corporate 401(k) clients; non-profit 403 (b) entities; private-label recordkeeping clients; and IRA customers. Personal Capital, a subsidiary of Empower Retirement, is an industry-leading hybrid wealth manager. For more information please visit empower-retirement.com and connect with us on Facebook, Twitter, LinkedIn and Instagram.
1 Pensions & Investments 2020 Defined Contribution Survey Ranking as of April 2020. |
2 Estimated joint assets under administration of Empower Retirement and MassMutual. |
3 As of Sept. 30, 2020. Information refers to the business of Great-West Life & Annuity Insurance Company and its subsidiaries, including Great-West Life & Annuity Insurance Company of New York and GWFS Equities, Inc. GWLA’s consolidated total assets under administration (AUA) were $709.9B. AUA is a non-GAAP measure and does not reflect the financial stability or strength of a company. GWLA’s statutory assets total $54.8B and liabilities total $51.8B. GWLANY statutory assets total $1.69B and liabilities total $1.57B. |
Online advice and the managed account service are part of the Empower Retirement Advisory Services suite of services offered by Advised Assets Group, LLC, a registered investment adviser.
Securities offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is an affiliate of Empower Retirement, LLC; Great-West Funds, Inc.; and registered investment advisers, Advised Assets Group, LLC and Personal Capital. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.
Empower Institutional refers to retirement recordkeeping services offered by Empower Retirement, LLC (d/b/a Empower Administrators, LLC in California) and its affiliates.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Certain statements in this press release constitute forward-looking statements representing management’s current view of future events based on reasonable assumptions. These statements are not guarantees of future performance as actual results may differ depending on the development and completion of this business combination. Consider these and other factors, uncertainties and potential events carefully and do not place undue reliance on forward-looking information. Other than as specifically required by applicable law, forward-looking information as a result of new information, future events or otherwise will not be updated. RO1465738-1220
