Deals & People December 30, 2022

Retirement Industry People Moves

OneAmerica names new CIO; Colony Group expands Boston footprint; Commonwealth Financial takes on Indiana advisory; and more.

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OneAmerica Names David Weisenburger CIO

Insurance and financial services provider OneAmerica announced that David Weisenburger will succeed CIO John Mason upon his retirement at the end of May 2023.

Weisenburger, a vice president at OneAmerica Financial Partners, will be the fifth CIO for the companies of OneAmerica since World War II, according to the firm. His 15-year career at OneAmerica has included oversight of the bond portfolio; responsibility for investment strategy and risk management; and managing administrative office functions. 

Weisenburger has served as vice president of investment strategy and risk; fixed income securities; and marketable bonds at OneAmerica. He was previously affiliated with Ohio Casualty Group and Summit Investment Partners. 

Mason has been at Indianapolis-based OneAmerica for 36 years, the last 11 as CIO. He will continue to serve as CIO until his retirement in May, with Weisenburg serving as his deputy through the transition period.

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The Colony Group Expands Boston Footprint with Cooper Lapman Acquisition

Wealth and business management firm The Colony Group has signed an agreement to acquire registered investment adviser Cooper Lapman Financial by the end of the first quarter of 2023, the companies said in a press release.

The Colony Group is based in Boston and has $19 billion in assets under management. The firm said Cooper Lapman will further expand Colony’s team in the Boston area, with wealth management and investment services focused on high-net-worth individuals and families.

Miriam “Mimmy” Cooper and Mark Lapman will join Colony as senior wealth advisers, along with colleagues Lauren Ledger and Trey Tremblay.

Colony will offer Cooper Lapman’s clients enhanced support and access to a broader range of wealth management services, while also allowing the Cooper Lapman team to leverage Colony’s operational infrastructure and its comprehensive service offering and investment capabilities, the companyies said in the release.

Strategic Planning Group Moves to Commonwealth Financial for Tech, Client Capabilities

Strategic Planning Group of Fishers, Indiana, has joined Commonwealth Financial Network’s advisory firm as it seeks to harness its technology and client capabilities, the two firms said in a press release.

Strategic Planning Group provides financial planning and investment management services to business owners, individuals and families, with a focus on physicians, executives and other professionals who range from being in the early stages of their careers to nearing retirement, the firms said in a press release.

Strategic Planning Group’s  John Wood (president and adviser) and Chris McCauley (adviser), along with Kerry Zerla (director of taxation services) and Julie Ogle (operations manager), will bring with them more than $220 million in client assets.

Technology was a key consideration for Strategic Planning Group in joining with a larger firm, McCauley said in the press release. He said the firm’s advisers will benefit through planning, reporting tools and other functionalities that will “translate to more time to spend on nurturing relationships, as well as tangible capabilities they can showcase to connect with prospects.”

Commonwealth Financial Network is based in Waltham, Massachusetts, and oversees more than $273 billion in assets.

Annuity Provider American Equity Rejects Buyout Bid from Prosperity and Elliott

American Equity Investment Life Holding Company has rejected an unsolicited, non-binding buyout offer from Prosperity Group Holdings and its principal shareholder, private equity firm Elliott Investment Management.

The firms made the initial proposal on December 8 to acquire American Equity, which sells retirement income annuities, for $45 per share in cash. The Des Moines, Iowa-based company’s board rejected the bid on December 12. Prosperity made a second offer with the same price and economic terms on December 19, and American Equity’s board rejected it again the next day, according to a press release.

“Consistent with its fiduciary obligations and in consultation with independent financial and legal advisors, the Board has carefully evaluated Prosperity and Elliott’s opportunistic proposal and unanimously determined that it significantly undervalues the Company,” David Mulcahy, chair of American Equity, said in the release.

American Equity works with independent agents, banks and broker/dealers through wholly owned operating subsidiaries to provide annuity products for guaranteed income in retirement. The firm has recently reframed its investment focus to emphasize insurance liability-driven-asset allocation and alternate, private-asset management, according to the press release.

American’s Equity stock price on the Nasdaq closed at $46.08 at market close on Thursday, after increasing from $39.13 on December 16.

Compliance December 30, 2022

Biden Signs SECURE 2.0 Into Law

The retirement reform legislation is now officially passed, with widespread industry support.

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On Thursday night, President Joe Biden signed the $1.7 trillion omnibus spending package which contains the SECURE 2.0 Act—a package of retirement reform that will have widespread implications for the industry and will increase the savings potential for many Americans. The Senate passed the spending bill 68 to 29 on December 22, and the House 225 to 201 on December 23.

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Some of the SECURE 2.0 provisions will take effect on January 1, 2023, such as increasing the required minimum distribution age to 73 and increasing the small business startup tax credit from 50% of administrative costs to 100%, up to $5,000. Still others will take effect years in the future, such as requiring automatic enrollment for new 401(k) and 403(b) plans, starting in 2025.

Our overview of the key provisions in SECURE 2.0 can be found here.

SECURE 2.0 is the aggregated and reconciled product of three bills, two of which originated in the Senate and one in the House of Representatives.

The Senate versions, known as the Enhancing American Retirement Now (EARN) Act, and the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE and SHINE) Act, were proposed in the U.S. Senate Committee on Finance and the U.S. Senate Committee on Health, Labor and Education, respectively. The House version was known as the Securing a Strong Retirement Act, which began in the U.S. House Committee on Ways and Means.

Voya Financial, one of the country’s largest retirement recordkeepers, said in an emailed statement that “SECURE 2.0 will make a number of important changes to help working individuals save more for retirement and increase their access to workplace retirement plans, including: automatically enrolling new employees into 401(k) and 403(b) retirement plans; granting a small business plan start-up credit for start-up costs; increasing the required minimum distribution age; allowing employers to treat repayments of student loans as elective contributions to one’s retirement plan for matching purposes; and allowing employers to create emergency savings accounts within their retirement plan.”

The automatic features are broadly popular in the retirement industry and backed by research as effective means of increasing enrollment. They were also cited by a statement from another of the country’s large retirement service providers, Vanguard, which wrote: “This landmark legislation makes it easier for participants to save for their future by broadening Americans’ access to the retirement savings system through expanded automatic enrollment and escalation, novel portability efforts that Vanguard helped pioneer, and greater transparency around target-date fund performance.”

The Insured Retirement Institute boasted that 14 provisions they advocated for made it into the final bill, including automatic enrollment, allowing 403(b) plans to join pooled employer plans, and increasing catch-up contribution limits.

The Investment Company Institute also applauded the passage: “Key provisions of this important bill include the promotion of automatic enrollment, which will lead to increased participation rates in 401(k) and 403(b) retirement savings plans. The bill will support people as they look to start saving earlier by allowing employees to receive matching contributions to their retirement accounts based on student loan payments. Additionally, the legislation will help expand pooled employer plans, giving additional opportunities for individuals to access savings tools, and build for a secure financial future.”

Attorneys from the Wagner Law Group, which practices in ERISA and employee benefits law, noted that while most provisions will go into effect January 1, 2025, plan sponsors and advisers need to be aware of the various time frames for each specific law and how to manage them accordingly.

“Secure 2.0 is nearly 400 pages in length, addressing many disparate provisions,” the Boston-based firm said in an emailed newsletter to clients. “Some are technical in nature, many are non-controversial, and some represent significant improvements that have been requested for a long period of time.”

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