Transamerica to Take on Mercer DC Recordkeeping Business
Transamerica will become the preferred defined contribution
recordkeeping provider for Mercer's total benefit outsourcing and total
retirement outsourcing clients.
Aegon, through an affiliate of its Transamerica unit, has
reached an agreement with Mercer HR Services, LLC to acquire Mercer’s U.S.
defined contribution (DC) administration book of business.
Upon completion of the acquisition, the defined contribution
business will transition to Transamerica Retirement Solutions, which Aegon says will become a top ten DC
recordkeeper based on plan participants and assets.
The transaction complements Transamerica’s current
retirement services offering, which has experienced success and growth in the
large and mega markets with a primary focus in the not-for-profit segment.
“This agreement with Mercer further strengthens
Transamerica’s leading position in the U.S. retirement sector, with the
know-how and broad capability to serve every retirement plan market
segment,” says Mark Mullin, a member of Aegon’s Management Board and
president and CEO of Transamerica. “This latest strategic development
supports our aim to further grow and diversify our customer base, while
continuing to expand our offering of fee-based retirement solutions.”
As a result of the acquisition, the number of retirement
plan participants serviced by Transamerica will increase by 917,000 to
approximately 5 million. Assets under administration (AUA) will increase by $71
billion to approximately $216 billion (as of August 31, 2015).
In addition, Transamerica will become the preferred defined
contribution recordkeeping provider for Mercer’s total benefit outsourcing and
total retirement outsourcing clients going forward. Ken Haderer, Mercer’s chief
operating officer, notes, “We also want to clearly state that we are
committed to continuing to provide best of class service to our defined benefit
and health clients through our own solutions.”
Additionally, this transaction provides Transamerica the
opportunity to further serve the growing market for individual retirement
account rollover products and retirement counselling services.
The transaction is expected to close in the fourth quarter
of 2015, subject to regulatory approval.
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Even people who aren’t going back to school think of fall as
a time to brush up on the industry. Others might like to return to an old
favorite. Along with plenty of reading recommendations for advisers are titles for
those advisers who want to give recommendations to their plan sponsor clients.
Our survey found that most (75%) are looking forward to fall
reading, 17% said it’s a “maybe, if they have the time” and 8% are too busy. One
survey participant was looking forward to reading “anything but business.”
Work-related titles get the nod (55%) over “something I’ve always meant to get
around to” (36%).
On the readings lists are: “Ctrl Alt Delete: Reboot Your
Business. Reboot Your Life. Your Future Depends on It” by Mitch Joel; Certified
Financial Planner (CFP) coursework; “1491: New Revelations of the Americas
Before Columbus” by Charles Mann; and Bill Bryson’s “A Walk in the Woods.”
Bob Doll, senior portfolio manager and chief equity
strategist at Nuveen Asset Management, mixes it up with a fall reading list
that has some thoughtful, ambitious titles: “The Death of Money: The Coming
Collapse of the International Monetary System” by James Rickards and “Prepare:
Living Your Faith in an Increasingly Hostile Culture” by J. Paul Nyquist and
David Jeremiah. John Grisham’s “The Racketeer” provides balance.
Tim Noonan, managing
director, capital markets insights, Russell Investments, says he sees a lot of
people reading “The Boys in the
Boat” byDaniel James Brown, which
he describes as “an amazing story about teamwork and grit, which is indirectly
a morality tale about how spoiled we’ve all become.”
NEXT: Tales of inspiration.
Pressing issues. Also, how Americans learned to spend compulsively.
Edmund F. Murphy III, president of Empower Retirement, calls
“The Boys in the Boat” a really inspiring story about determination, team work,
and what it takes to win. Also on his fall list: “The Heart and the Fist"
by Eric Greitens (a great read that underscores the value and importance of
service) and Laura Hillenbrand’s “Unbroken,” which Murphy says is an epic tale
of survival against incredible odds.
Noonan encourages advisers to make time for
three titles. Joseph Stiglitz’s “The
Price of Inequality” addresses a top political, economic and
sociological challenge that modern capitalist societies must now confront. For
some interesting insights into longevity, Noonan’s pick is “A Long Bright
Future” by Laura Carstensen. “It’s a fantastic treatise on the incredible gift
of long life written by the head of Stanford’s Center on Longevity—a
must-read for those approaching a long retirement through a glass half-full
mentality,” he says.
Jim MacDonald, president of Workplace Investing at Fidelity
Investments, recommends “The Innovators: How a Group of Hackers, Geniuses, and
Geeks Created the Digital Revolution,” by Walter Isaacson. “It’s the
fascinating story of the digital revolution from 1850 to today,” he says. “What
I found especially interesting were the stories of the unsung innovators, such
as Grace Hopper and Ada Lovelace, that dramatically shaped modern computing and
the Internet.”
MacDonald also cites Tom Brokaw’s memoir “A Lucky Life
Interrupted,” about Brokaw’s recent battle with cancer. “The book provides
interesting insight on Brokaw’s career highlights and how he approached his
condition, as well as context for other cancer patients and their families,”
MacDonald says.
On the subject of how people spend money, Noonan says “The
Land of Desire: Merchants, Power, and the Rise of a New American Culture” by
William Leach is a must. “Americans weren’t always addicted to consumption,” he
says. “We had to be trained. This is the story of how the department store
taught Americans that there is no such thing as enough.” Leach’s book is for
anyone who wants to understand and combat compulsive spending, Noonan says.
NEXT: Fun with behavioral
economics
Plan sponsors that want to gain a better understanding of the
typical behaviors and emotions of plan participants might enjoy “Save More
Tomorrow” by Shlomo Benartzi or “Nudge: Improving Decisions About Health,
Wealth, and Happiness “ by Richard Thaler and Cass Sunstein. Both books provide
useful steps to consider when determining plan design and plan communication strategies,
says Dan Peluse, director of corporate plan services at Wintrust Wealth
Management, and a 2015 PLANADVISER Top 100 Adviser.
Another fan of Thaler, Fredrik Axsater, global head of State
Street Global Advisors in defined contribution, is reading “Misbehaving,” Thaler’s
latest book. “He summarizes his insights and research over many years in this
book, which directly applies both to plan sponsors and advisers,” Axsater says.
Brendan
Curran, a portfolio manager with State Street Global Advisors, is enjoying “The
Ingenious Mr. Pyke” by Henry Hemming. “It’s a fun, light read about a British
inventor (and possibly Soviet spy) during WW2. His approach to innovation and outside-the-box
thinking apply directly to the level of innovation and idea creation needed by
DC sponsors and asset managers today,” Curran says.
Fall can be a good time to turn back to perennial favorites. “I
just re-read the very first financial book I read as an adviser,” says Jason Chepenik,
managing partner at Chepenik Financial. According to Chepenik, George Samuel
Clason’s classic “The Richest Man in Babylon” is more of a pamphlet than a book,
but it drills down on the basics. “I still use the term “10% of what you earn
is yours to keep,” Chepenik says. “It’s interesting that our entire industry is
focused on the 10% number today, when I read this pamphlet 17 years ago. It’s
great!” The 1926 book uses parables and anecdotes from the ancient world with
herdsmen, tradesmen and merchants to deliver financial advice.
NEXT: The crash of ’20.
That’s 1720.
Those interested in more vintage wisdom should take a look at
recommendations from Mark Hebner, founder and president of Index Fund Advisors,
and a serious collector and connoisseur of financial history. Nothing like a
nearly 300-year-old market crash to give a reader some perspective. Hebner
likes “The Great Mirror of Folly: Finance, Culture, and the Crash of 1720,” a
deep dive into the first global stock market crash, which left investors in
London, Paris and Amsterdam shattered practically overnight. A discussion of a
1720 book, it’s “significant because it discusses the world's first global
financial crisis, the first mention of stock market bubbles and
it reminds investors that not much has changed in financial
markets,” Hebner says.
For quick reading, Hebner recommends Jack Bogle’s “The Little
Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of
Stock Market Returns” as a quick summary of the upside of index funds. The
length (about 240 pages) makes it perfect for a cross-country flight, he says.
Seriously pressed for time and need some perspective on
lifetime income? Jamie Kalamarides, head of institutional
investment solutions for Prudential Retirement, recommends an 8-page article
from the Benefits Law Journal. “In light of the fiduciary rules, this article
gives the blueprint for adding lifetime income to DC plans,” he says.
Every
fall, Noonan re-reads Hemingway and is now deep into “Islands in the Spring,”
which contains an incredible quote that he says perfectly sums up the August market
crashes: “… the true hurricane months have fine weather when there are no
storms.”