Empower Exceeds 90% Retention of Participants and Assets from MassMutual Acquisition

GREENWOOD VILLAGE, Colorado–(BUSINESS WIRE)–As Empower approaches the completion of its integration of the pension business acquired from MassMutual, the company announces key milestones for its customers related to the continued success of employers and pension investors that the company currently serves.

Empower completed its acquisition of MassMutual’s pension business in December 2020 with the goal of capitalizing on the expertise of both companies, expanding technological excellence and product capabilities, and creating scale. A comprehensive onboarding program consisting of eight “waves” of plan integrations launched in mid-2021 is expected to wrap up in October.

Key Achievements:

Retention results: Through the onboarding process, Empower has earned the trust of more than 20,000 MassMutual customers and 2.3 million participants, representing a 92% participant retention rate as of August 31. Empower retained approximately $174 billion in client assets, or 91%. Additionally, Empower retained 87% of all plans.

“This program was designed to introduce Empower to millions of retirement investors and their employers and ask them to know and trust us,” said Edmund F. Murphy III, President and CEO. “We are grateful for the trust they place in us and look forward to earning their trust every day.”

Murphy explained that for many busy plan sponsors, retirement plans can be seen as complex but important benefits. Empower’s efforts to simplify the process for sponsors are a hallmark of its best retention rates.

Simplified integration: Leveraging years of experience with retirement plan integration, Empower has simplified the requirements for plan sponsors to move their plan to the company’s record-keeping platform. By using technology tools that brought new automation to the process of onboarding new plans, Empower was able to simplify and save certain plan transition phases.

“It’s an important goal that we don’t ask too much of plan sponsors. Their HR and benefits teams are busy enough, and we’re here to meet their needs first,” said Rich Linton, President and COO of Empower. “We strongly believe in keeping their demands to a minimum.”

Additionally, Linton said moving MassMutual plans from a cross-platform environment to a single record-keeping system also has the potential to save administration across the business.

Focused on financial well-being: All former MassMutual Retirement Plan members have access to Empower’s financial wellness-focused member web experience at the center of their retirement planning journey. Empower’s site – which is launching with all customers this year – provides a comprehensive 360-degree view of an individual’s financial situation, including all retirement assets, lifetime income projections, bank accounts , taxable investment accounts and liabilities such as mortgages and credit. cards.

“We owe it to the people we serve to provide them with intuitive financial tools, so they have the opportunity to plan for the future they deserve,” Linton said. “Everyone has a different story, different goals, different priorities, and we’ve created sophisticated technology backed by human guidance that is unique and personal to each saver and encourages them to take action and take control of their financial future. ”

“We believe in talking to people about money in terms they understand,” he said. “And we think employers find that incredibly helpful for their workers.”

Continuity of the service team: Throughout the onboarding program, Empower maintains customer service teams to assist plan sponsors, third-party administrators (TPAs), advisors, and consultants involved in the transition to the Empower platform. Familiarity between relying parties helps plans integrate more effectively.

“Business integration is a huge undertaking, and maintaining continuity for our customers has been crucial,” Linton said. “The combination of two very experienced teams benefits everyone.

The combined business will continue to serve retirement plans sponsored by a wide range of employers. These include mega, large, medium and small business 401(k) plans; government plans ranging in scale from state-level plans to municipal agencies; non-profit organizations such as hospitals and 403(b) plans of religious organizations; collectively negotiated Taft-Hartley plans; and unqualified plans. The transaction also included the defined benefit business of MassMutual, which is now under the Empower umbrella.

Murphy said Empower’s strategic acquisitions have increased its appeal to new customers. RFP activity over the past year was higher than any previous year for all plan types, including defined contribution 401(k), 457(b), 403 (b) and Taft-Hartley of all sizes covering business, government, labor and not-for-profit employers.

“The level of talent in our organization between Empower and former MassMutual associates is second to none and everyone here is absolutely obsessed with customer success, and it shows how far this onboarding program has come,” said Murphy.

In addition to the MassMutual business, Empower acquired the full-service retirement business of Prudential Financial in April 2022. Integration of the Prudential business begins in the first quarter of 2023.

About Empower

Headquartered in the Denver metro area, Empower administers approximately $1.2 trillion in assets for over 17 million pension plan members1 and is the second-largest pension plan accountant in the nation by total number of participants.2 Empower serves all segments of the employer-sponsored retirement plan market: 457 government plans; Taft-Hartley 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 As as of June 30, 2022. The information refers to all retirement businesses of Empower Annuity Insurance Company of America (EAIC) and its subsidiaries, including Empower Retirement, LLC; Empower Life & Annuity Insurance Company of New York (ELAINY); and Prudential Retirement Insurance & Annuity Company (PRIAC), marketed under the Empower brand. EAIC’s total consolidated assets under administration (AUA) were $1,289.3 billion. AAU is a non-GAAP measure and does not reflect a company’s financial stability or strength. As of June 30, 2022, EAIC’s statutory assets totaled $77.2 billion and liabilities totaled $74.3 billion. ELAINY’s statutory assets total $6.9 billion and liabilities total $6.7 billion. PRIAC’s statutory assets total $82.1 billion and liabilities total $80.8 billion.

2 Pensions & Investments 2020 Defined Contribution Survey Ranking as of April 2021.

On August 1, 2022, Empower announced that it was changing the names of various companies within its group of companies to align the names with the Empower brand. For more information regarding name changes, please visit empower.com/name-change.

Securities, when featured, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is a subsidiary of Empower Retirement, LLC; Empower Funds, Inc.; and Registered Investment Advisor Empower Advisory Group, LLC. This document is provided for informational purposes only and is not intended to provide investment, legal or tax advice or recommendations.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America and its subsidiaries, including Prudential Retirement Insurance and Annuity Company and Empower Retirement, LLC. This document is provided for informational purposes only and is not intended to provide investment, legal or tax advice or recommendations.

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