GREENWOOD VILLAGE, Colorado–(BUSINESS WIRE)–Empower, the nation’s second-largest retirement plan provider,1 achieved $62 billion in pension plan sales in 2022. AUA figure represents funded and committed organic sales.
As of June 30, 2022, Empower has won over 2,000 new client mandates. The company has added several large corporate and state plans to its portfolio, which now includes more than 71,000 pension plans and covers approximately 17 million pension plan participants.
RFP activity at Empower is on track to surpass past levels in defined contribution plan types, including 401(k), 457(b), and 403(b) plans of all sizes spanning businesses , government, and nonprofit employers, and Taft-Hartley plans. Additionally, Empower has identified some $1.6 trillion in new business that it is pursuing in the marketplace.
“The retirement ecosystem remains strong and is a trusted source of information on how employers and workers are looking at the path forward,” said Empower President and CEO Edmund F. Murphy. III. Murphy noted that one constant in business that never changes is the importance of customer service in turbulent times.
“As macroeconomic factors and market volatility grab the headlines and capture the attention of individual investors, our ability to meet client needs is critical. We want plan sponsors and our advisory partners to be able to meet the needs of these people every day and we are grateful for the chance to help a large and growing number of employers and their workers.” said Murphy.
Empower has been successful in offering large plan sponsors who are committed to providing a state-of-the-art retirement benefit to their workers.
Empower has secured new mandates or renewals with manufacturers of consumer and industrial products 3Mtravel company JetBluebuilding materials supplier FW Webbenergy infrastructure company Kinder Morgannon-profit health care provider WellSpan Health and private higher education provider Keizer University / University of the Everglades.
Empower’s Government Markets segment, which is a leading provider of 457 and other workplace savings plans for public sector employers, manages $200 billion in assets for 3.7 million plan participants, as of April 30, 2022. Empower serves public servants in some 4,776 plans, including 30 state pension plans with recent renewals with the state of wisconsin and the North Carolina State.
Empower’s advisor-sold business, which includes plans with up to $50 million in assets, has added some 1,400 plans since the start of 2022.
Empower achieved significant new client mandates through its partnership with pension plan advisors through its advisor-managed account offering. Empower and the plan advisors that work together to offer managed accounts to plan sponsors and their employees have reached more than 830 plans and 13 advisory firms, as of June 30. In this partnership, advisors design the retirement strategy while Empower provides a premier client experience.
Empower was one of the first companies in the market to offer advisor-managed accounts, which are for plans sold by advisors, regardless of plan size. The program is available to advisors who serve the retirement plan needs of employers of all types of employers, regardless of industry or government sector. The new sales represent an expanded footprint in the pension services market for Empower, which completed acquisitions of the Mass Mutual and Prudential pension businesses in December 2020 and April 2022, respectively.
Headquartered in the Denver metro area, Empower administers approximately $1.4 trillion in assets2 for over 17 million pension plan members2 and is the second-largest pension plan accountant in the nation by total number of participants.1 Empower serves all segments of the employer-sponsored retirement plan market: 457 government plans; small, medium and large business 401(k) customers; 403(b) non-profit entities; private label registrar clients; and IRA customers. Personal Capital, a subsidiary of Empower, is an industry-leading hybrid wealth manager. For more information, please visit empower.com and join us on Facebook, Twitter, LinkedIn and instagram.
1 Pension & Investments 2021 Defined Contribution Survey Ranking as of April 2022.
2 As of April 1, 2022. Information refers to all retirement businesses of Great-West Life & Annuity Insurance Company (GWLA) and its subsidiaries, including Empower Retirement, LLC; Great-West Life & Annuity Insurance Company of New York (GWLANY); and Prudential Retirement Insurance & Annuity Company (PRIAC), marketed under the Empower brand. Assets represent the estimated consolidated pro forma assets under administration (AUA) of Empower and the full-service pension business of Prudential Financial, Inc., as of March 31, 2022. AAU is a non-standard measure. GAAP and does not reflect the financial stability or strength of a company. As of March 31, 2022, GWLA statutory assets totaled $78.9 billion and liabilities totaled $75.2 billion, GWLANY statutory assets totaled $4.32 billion and liabilities totaled $4.02 billion , and PRIAC’s statutory assets totaled $100.329 billion and liabilities totaled $98.793 billion.
Securities, when offered, are offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is a subsidiary of Empower Retirement, LLC; Great-West Funds, Inc.; and Registered Investment Advisor, Advised Assets Group, LLC. This material is provided for informational purposes only and is not intended to provide investment, legal or tax advice or recommendations.
Empower Retirement refers to the products and services offered by GWLA and its affiliates, MassMutual legacy business, Empower Retirement, LLC. Empower Retirement is not affiliated with Prudential or its affiliates. All product names, logos and brands are the property of their respective owners. “EMPOWER”, “EMPOWER RETIREMENT” and all related product names and logos are trademarks of GWLA. Prudential and all related logos are trademarks owned by The Prudential Insurance Company of America and are used under license. RO2269136-0722