Deals & People November 16, 2009

New ING Team Serves Higher Ed 403(b)s

ING’s U.S. Retirement Services has recently formed a new Business Development Team dedicated to serving employer-sponsored higher education retirement plans across the country, and identifying new growth opportunities for this segment of the 403(b) market.

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According to an announcement, the members of ING’s new Higher Education Business Development Team are:

Kevin Brown, senior vice president—Brown is leading the team to broaden ING’s national focus on public and private higher education institutions. Prior to taking on this role, he was chief counsel and head of External Affairs, overseeing ING’s state and federal affairs group. Brown has held various executive positions in the Law Department at ING and with the former Aetna U.S. Healthcare.

Kate Lewis, vice president—Lewis oversees new business development and sales opportunities for public colleges/universities in the Western half of the country, working closely with ING’s local management in that territory.  In addition, she is responsible for creating and managing a national consultant relations strategy focused on the higher education market.

Gregg Holgate, vice president—Holgate is responsible for new business development and sales opportunities in the Eastern half of the country, working closely with ING’s local management in that territory. Holgate returned to ING from The Gabor Agency, where he served as president for three years. He began his career at ING in 1996.

Troy Dryer, national director—Dryer is focused on new business development and sales opportunities for private colleges/universities in the Western half of the country, working closely with ING’s local management in that territory. Since 1994, he has managed education client relationships. Prior to joining ING, Dryer worked with large university retirement programs and also served as director of operations for a regional third-party administrator.

Dawn Mazzola, national director—Mazzola has more than 15 years of experience within the financial services marketplace.  Prior to joining the team, she was head of product management for ING’s higher education market. Since joining ING in 1994, Mazzola has held various senior roles in product management, sales support and operations.

In the higher education market, ING serves more than 1,300 plans and 91,000 participants across all 50 states, with offices and representatives in the local communities where it does business, according to the company.

Data & Research November 16, 2009

Frequency of Education Linked to 401(k) Participation

Regular employer-sponsored retirement seminars motivate more employees to participate in and contribute to company 401(k) plans, according to a study published in Economic Inquiry.

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The study found direct links between how often a retirement seminar is offered and increased levels of 401(k) activity—especially among those employees lower down on the pay scale. Participation rates by non-highly compensated employees are 11.5% higher with plans that offer frequent seminars, than those with no seminars, according to a press release. For highly compensated employees, participation is 6.5% higher when seminars are more regularly available.

In firms where participation is historically low, the number of employer-sponsored seminars spiked—which the researchers said is a strong indication that retirement seminars are remedial.

The study found employers don’t offer retirement education solely for altruistic reasons. In addition to helping employees prepare for retirement, the seminars introduce workers to the value of the company’s existing pension plan and help stave off subsequent demands on employers for more generous plans. “Assistance with financial planning may also enhance employee loyalty, improve labor relations, and boost morale,” the authors contend.

“The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers” uses the KPMG Peat Marwick Retirement Benefit Survey to conduct a detailed investigation into employer-based retirement training programs. In the KPMG survey, 1,100 public and private employers were chosen randomly and interviewed both in 1993 and again the following year. Using variables such as firm characteristics, retirement plan characteristics, and 401(k) plan characteristics, the authors evaluate the relationship between education and behavior.

The study article can be purchased here.


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