Deals & People September 6, 2019

Retirement Industry People Moves

Cohen & Steers Creates Global Distribution Role; Voya Announces Hires in Retirement Strategic Growth Team; Heitman Selects Investment Executive to DC Practice; and more.

Reported by

Art by Subin Yang

Cohen & Steers Creates Global Distribution Role

Cohen & Steers has added Daniel Charles as head of Global Distribution. In this newly created role, Charles will lead all aspects of the company’s business development and client service efforts, providing strategic direction for both institutional and intermediary markets across all regions. He will serve on the firm’s executive committee.

Most recently, Charles served in a similar capacity as head of Global Distribution at William Blair, where his accomplishments included leading the firm’s expansion into Australia and Canada. Before that, he served at Janus Capital Group, overseeing worldwide sales, client service and consultant relations.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“We welcome Dan to the Cohen & Steers team,” says Joseph Harvey, president and chief investment officer. “His hands-on experience across multiple channels and regions will be critical to integrating and aligning our global institutional and wealth management teams. His leadership style is a strong fit for our collaborative culture, while his understanding of the market will be an invaluable resource as we look to strengthen our leadership in key markets and identify new opportunities.”

Voya Announces Hires in Retirement Strategic Growth Team

Voya has added a series of hires to its retirement business.

Doug Murray joined the business in August 2018 as the senior vice president of Retirement Strategic Growth and Partnerships. 

In this new role, Murray is responsible for building relationships with key retirement distribution partners, as well as leading a team that supports business growth across all of Voya’s Corporate and Tax-Exempt Market segments. He also oversees Voya’s consultant relationship management, third-party administrator (TPA) relationship management and business development (RFP) teams, increasing awareness of Voya among the intermediaries they reach, including plan advisers, wirehouses, TPAs and other distribution channels.

Murray came to Voya with more than 20 years of sales experience in the retirement plan industry, and a broad knowledge of products, services, distribution channels and the competitive landscape. Most recently, Murray served as executive vice president and national director of Institutional Sales at Wells Fargo where he led sales and growth across all products and segments. He is based in Voya’s Minneapolis office in Minnesota, and reports to Bill Harmon, president of Retirement Corporate Markets, while also supporting Heather Lavallee, president of Tax-Exempt Markets.

Ketul Thaker also joined Voya’s Retirement Strategic Growth team in June 2019 as vice president of Consultant Relations. Thaker joined Voya after spending the past three years as head of Workplace Consultant Relations at MassMutual. Prior to MassMutual, he spent more than 10 years at Voya in a variety of roles including consultant relations.

In his new role, Thaker will be responsible for developing and leading strategic relationships with intermediary partners serving the retirement business. He is based in Voya’s Windsor office and reports to Murray.

Stanley Barker and Michelle Bower haverecently joined Voya’s Retirement Strategic Growth team as key account managers. In their new roles, Barker and Bower will be responsible for partnering and growing relationships with key consultant and advisory firms.

Prior to joining Voya in June 2019, Barker was regional director of business development at Principal focusing on strategic broker dealer firms responsible for key growth initiatives for the firm. Prior to joining Voya in March 2019, Michelle was vice president of business development at Transamerica, responsible for managing and growing relationships with key broker dealer distribution partners and building out a new Specialist Advisor channel service model.  

Barker works remotely from the Milwaukee area and Bower works remotely from Southern California. Both report to Ralph DelSesto, senior vice president of TPA & Broker-Dealer Distribution and Support Strategy for Voya’s Retirement business. 

Heitman Selects Investment Executive for DC Practice

Heitman LLC, a global real estate investment management firm, announced that Walter “Tripp” Braillard has joined the firm as senior vice president, Defined Contribution Solutions. In this role, Braillard will be responsible for supporting the firm’s initiatives across its full suite of real estate investment strategies within the defined contribution (DC) channel including consulting firms, outsourced chief investment officers (OCIO) providers, and other financial intermediaries.

“Tripp has a tenured and successful track record offering investment products to the DC Market,” says James Gruver, Heitman managing director, Client Service & Marketing. “Real estate as an asset class offers investors a number of benefits within their portfolios including low correlations with conventional asset classes and a hedge against inflation. We are excited to continue to offer DC investors access to public and private real estate investment opportunities and look forward to Tripp adding his expertise in defined contribution solutions.”

Prior to joining Heitman, Braillard was a senior vice president at PIMCO where he focused on the defined contribution investment only (DCIO) and insurance sub-advisory marketplaces. Previously, he was executive vice president, head of Retirement Strategic Accounts at BNY Mellon Investment Management. Earlier in his career, he held a variety of client service and marketing roles with Fidelity Investments.

Braillard received his bachelor’s degree from Boston College and has a master’s from the F.W. Olin Graduate School of Business at Babson College.

Economic Group Pension Services Acquires Actuarial Firm

Economic Group Pension Services (EGPS), Inc., has acquired actuarial consulting and pension administration firm, Professional Pension Planners, Inc. based in Ardsley, New York, as of April 1.   

“As we continue to move forward with our projected growth, we are excited to bring on an organization that has the same values in which we stand by. Their qualities and expertise connect with what EGPS represents in having a strong and personal relationship with our clients,” explains Daniel Liss, chief executive officer.

Fred Harrison, previously president of Professional Pension Planners, Inc. is now regional vice president for the Ardsley, New York regional office for EGPS. Mark Sadoff, previously vice president, is now a consulting actuary for EGPS.

Parametric Names Director of Liability-Driven Investment Strategies

Parametric Portfolio Associates LLC, an affiliate of Eaton Vance Corporation, appointed David Phillips, CFA, as director, Liability Driven Investment Strategies. Working closely with the Overlay Solutions and Fixed Income teams, this new role supports the recently announced strategic initiative to strengthen its leadership positions in rules-based, systematic investment strategies, customized separately managed accounts and wealth management solutions.

Phillips focuses on helping clients with modeling pension liabilities, provides expertise on liability-driven investment (LDI) management, and builds and manages relevant fixed income models. Based in Seattle, Phillips joined Parametric on July 29, and reports to Justin Henne, CFA, managing director of Investment Strategy.

“As Parametric deepens and expands its institutional relationships and fixed income offerings, David brings extensive background in designing LDI strategies, providing risk analytics and creating related thought leadership,” says Henne. “He will be instrumental in providing greater insights to our LDI clients and their consultants.”

Phillips was previously director, Client Strategy and Research/Risk Analytics at Russell Investments, where he was responsible for research, development and analysis of investment strategies for defined benefit (DB) plans and evaluating risk for plan sponsors. His prior experience includes serving as manager, Client Services at NISA Investment Advisors, where he provided pension liability expertise for the firm’s clients, and director, Asset Management for Celanese Corporation, where he led global pension investment activity.

He holds a bachelor’s degree in mathematics from the University of Wyoming and a master’s in mathematics from Oregon State University. He has an actuarial background and holds enrolled actuary (EA) and associate of the society of actuaries (ASA) designations.

Large and Mega Market Regional Directors Join Transamerica

Transamerica announced that Stefanie Signorello and Matt Hummel have joined the company as regional directors for mega/large market retirement plans.

In their roles, both Signorello and Hummel will manage relationships with retirement plan clients in large and mega markets and will drive market-facing and customer service strategy, while developing and maintaining strategic relationships with financial intermediary partners.

Signorello holds a bachelor’s degree from Stonehill College, and she will work with plan sponsors in New England. Hummel holds a bachelor’s degree from the University of Delaware and is based out of New Jersey. Both Signorello and Hummel will report to Christopher McTague, senior director of Client Engagement for the mega/large market segments at Transamerica.

“We are happy to have Stefanie Signorello and Matt Hummel bring their years of experience to Transamerica. Stefanie is well-known in New England as a knowledgeable and committed collaborator with plan sponsors and their financial advisers. Matt has a long track record of success and has established himself as an innovator of meaningful client solutions,” says M. Palmer Whitney, senior vice president of Client Engagement for all market segments at Transamerica. “We are very excited to have them join our team. I have every confidence both of these individuals will add to Transamerica’s momentum.”

TPA Relationships Director Moves to Securian

Industry veteran Matt King has joined Securian Financial as national third-party administrator (TPA) relationships director for the company’s retirement solutions division.

Based in West Hartford, Connecticut., King is responsible for developing a TPA program focused on strategic relationships, superior service and innovative solutions. 

Prior to joining Securian Financial, King served as TPA relationships director for The Standard and director of TPA sales support for Transamerica. He holds FINRA Series 6, 26 and 63 registrations, and earned a bachelor’s degree from Saint Michael’s College in Colchester, Vermont. King has served on the National Institute of Pension Administrators (NIPA) board of directors since 2016 and is currently CFO. 

“I believe deeply that all great TPA relationships are based on connection, commitment and conviction,” says King. “I am excited about joining the Securian Financial family to create a unique and memorable TPA experience.”

Strategic Investment Group Selects Managing Director for Relationships Team

Strategic Investment Group named Kenneth Shimberg as managing director on the Relationship Management team. Shimberg joins a team of six senior professionals with an average of 27 years of industry experience dedicated to partnering with Strategic’s 28 clients.

“Ken is an exciting addition to our team,” says Brian Murdock, president and chief executive officer of Strategic Investment Group. “He brings a wealth of investment expertise in both private and public markets, as well as deep knowledge of institutional investors. His experience both within the investment offices of two Ivy League endowments and as an outsourced chief investment officer position him well to work with our clients as a trusted adviser and partner.”

Shimberg joins Strategic from Mercer Investment Management where he was the chief investment officer of Mercer’s Not-for-Profit Institutions team. Prior to that, he worked at the Brown University Investment Office for 14 years, ultimately serving as managing director and acting chief investment officer, where he co-led the 19-member investment office team managing the University’s endowment and related financial assets. Previously, he co-managed the global private investment portfolio at the Princeton University Investment Company.

Shimberg has a bachelor’s degree in management science with a concentration in finance from the Massachusetts Institute of Technology and is a CFA charterholder.

Compliance September 6, 2019

Hospital System Wins Ruling on Governmental Plan Status

The complaint said Atrium has never satisfied the Federal law definition of a government of a state, a government of a political subdivision, or an agency or instrumentality of such and, therefore, its benefit plans do not qualify as ERISA-exempt governmental plans.

Reported by

A federal court judge has dismissed a lawsuit alleging a health care system in North Carolina falsely claims to be a governmental entity, allowing it to dodge Employee Retirement Income Security Act (ERISA) requirements and protections for its retirement and health plans.

The complaint—naming defendants The Charlotte-Mecklenburg Hospital Authority, Atrium Health Retirement Committee and its individual members, and MedCost Benefits Services LLC—says Atrium has never satisfied the Federal law definition of a government of a state, a government of a political subdivision, or an agency or instrumentality of such and, therefore, the plans do not qualify as ERISA-exempt governmental plans. The plaintiffs claim Atrium’s plans were not established by a governmental entity, and the plans are not maintained by any governmental entity.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

U.S. District Judge Thomas D. Schroeder noted in his opinion that the Authority is a non-profit health care conglomerate headquartered in Mecklenburg County, North Carolina. The City of Charlotte created the Authority in 1943 pursuant to the Hospital Authority Act (HAA) of North Carolina’s General Statutes. The HAA authorizes cities and counties to create hospital authorities “whenever a city council or a county board of commissioners finds and adopts a resolution finding that it is in the interest of the public health and welfare to create a hospital authority.” The Charlotte-Mecklenburg Hospital Authority is registered as a “municipal” body.

According to the court document, the Authority is governed by the Board of Atrium Commissioners. The Mayor of Charlotte appointed the Authority’s original commissioners, who took an oath to support the state and federal constitutions. To appoint new Board members, the Board submits a list of nominees to the Chairman of the County Commissioners, and the chairman appoints commissioners from that list. The chairman can remove the commissioners for inefficiency, neglect of duty, or misconduct in office, after notice and a hearing, and is required to remove any commissioner who, after notice and a hearing, is found to have acquiesced in any willful violation by the Authority of state law or of any contract to which the Authority is a party.

The Authority is granted “all powers necessary or convenient to carry out the purposes of [the Act].” The Authority has the power of eminent domain, may issue tax-exempt bonds, is not subject to tax on real property, personal property, or motor fuel, and is not subject to federal or state income tax or state franchise tax. The commissioners of the Authority’s board may not be compensated for their services. The Authority is also subject to open meetings laws and public records laws.

The defendants asked the court to take judicial notice of the Authority’s governing statute and articles of incorporation, the Authority’s registration in the Secretary of State’s website, as well as several statutes, administrative rulings, and an IRS private letter ruling.

Schroeder noted that, according to ERISA, a governmental plan is a “plan established or maintained for its employees by the Government of the United States, by the government of any State or political subdivision thereof, or by any agency or instrumentality of the foregoing.” The parties in the suit agreed that if the Authority’s plans are governmental plans, then the plans are not subject to ERISA coverage and the plaintiffs’ claims fail as a matter of law.

According to Schroeder, while the 4th U.S. Circuit Court of Appeals has not established a test for determining whether an entity is a governmental plan, to determine whether an entity is a “political subdivision” under federal law, courts routinely apply the test from NLRB v. Natural Gas Utility District of Hawkins County. This test provides that “political subdivisions” are “entities that are either created directly by the state, so as to constitute departments or administrative arms of the government, or administered by individuals who are responsible to public officials or to the general electorate.”

Schroeder said the Authority satisfies the first prong of the Hawkins test because it was created by the state of North Carolina through a delegation of its authority pursuant to the HAA. The plaintiffs argue that the Supreme Court in Hawkins cited the 4th Circuit’s decision in NLRB v. Randolph Electric Membership Corporation for the principle that a court looks to “the actual operations and characteristics of [entities] in deciding whether [they are] political subdivisions.” However, Schroeder pointed out that both the Supreme Court in Hawkins and the 4th Circuit in Randolph Electric considered the state statutes under which the entities were organized to ascertain the entities’ characteristics.

“Because Defendants have provided ample persuasive case law holding that creation by a local entity pursuant to a state enabling statute is sufficient to satisfy the first prong of the Hawkins test, and Plaintiffs have neither distinguished these cases from the present case nor provided persuasive contrary authority, the court finds that the first prong of the test is satisfied,” Schroeder wrote in his opinion.

Schroeder said that because the Hawkins test is disjunctive, satisfying either prong is sufficient for an entity to attain “political subdivision” status and thereby categorize its retirement benefits plans as “governmental plans” exempt from ERISA coverage. However, he explained why he was also persuaded that the Authority meets the second prong of the test.

“Courts have held that the second Hawkins prong—that the entity is administered by individuals who are responsible to public officials or to the general electorate—is met when public officials appoint and may remove the entity’s governing members. The complaint alleges that the Authority’s commissioners do not include state officials and that the commissioners are not appointed or removed by state officials. But there is no requirement that the entity consist of state officials or individuals who are appointed by state officials, so long as local government officials have appointment and removal power,” Schroeder stated.

Among other things, he also rejected the plaintiffs’ argument suggesting that the county chairman’s removal power is insufficient because it is limited to removal only for inefficiency, neglect of duty, or misconduct, as the removal power in Hawkins itself was limited to removal only for misfeasance or nonfeasance.

«