In
Bank of America Merrill Lynch’s 2017 Workplace Benefits Report, employees indicated that managing their finances—including health care costs such as premiums and
out-of-pocket expenses—is a source of stress.
In
a supplement to the report, the firm took a closer look at the topic of health care
and the role employers can play in helping employees manage their finances, and
found two-thirds of respondents rate planning for out-of-pocket cost as the
most challenging and stressful aspect of managing their health care. Three-quarters
feel fear regarding their health care finances, and half don’t know how to
predict current or future out-of-pocket health care costs or determine the appropriate
savings vehicle or rate.
Seventy-nine
percent of employees indicate they have experienced an increase in health care
costs, and of those, 63% say they are reducing the amount they are saving for
retirement. Nearly four-in-10 (39%) are contributing less to investment
accounts.
Health
care costs today are only part of the equation; concerns about future needs also have an impact. Only 14% of respondents say they feel they have a trusted
resource to help them understand Medicare options, and only 12% report they
feel they have a trusted resource or adviser for information regarding
long-term care insurance. Eleven percent indicated they feel they know where to
turn to figure out how to cover health care costs in retirement.
At
least 40% of respondents would like their employers to provide access to a financial
professional; education tailored to their age or the financial issues they are
facing; and/or expert-delivered financial training and education. Specifically,
health care topics they say they would most value advice and help with include
choices regarding Medicare and supplemental plans (50%), how to pay for
long-term care if needed (49%) and how much to save to pay for health care
throughout retirement (38%).
Bank of America
Merrill Lynch says employers should consider enhancing the financial education
they provide employees to ensure that it includes content about understanding health
care options and maximizing the benefits provided to ensure health care coverage
is appropriate. The firm also suggests employers expand their benefits package to
offer additional health care management tools, including health savings accounts (HSAs); and offer education and support beyond health care to help employees
address their full range of financial needs from retirement planning to general
savings habits and debt management.
Wilshire Partners With Vantage to Provide Fiduciary Services; T. Rowe Price Hires
Senior DC Strategist;MassMutual Hires Three New Regional Managing Directors; and more.
Wilshire Partners With
Vantage to Provide Fiduciary Services
Vantage Benefits
Administrators welcomes Wilshire
Associates into its Vantage Success Partners program. Wilshire will serve
as a 3(38) fiduciary for a newly formed Vantage Retirement Trust and it will
also build its investment menu.
“We wanted to identify established strategic partners who
could work with us to provide small to mid-sized firms with large-plan pricing
that would typically be available in retirement offerings at major
corporations,” says Vantage CEO Jeff
Richie. “Wilshire really stepped up as the investment manager for our new
group Trust.”
Jason Schwarz, president of Wilshire Funds Management, says “We are truly pleased to be selected as
a partner in this new approach developed by Vantage. We expect the use of
outsourced fiduciaries providing efficient, cost-effective solutions to
continue to grow, and Vantage is well positioned to capitalize on this trend
with the recent launch of its group Trust. The need and interest demonstrated
by plan sponsors and advisers is significant.”
NEXT: T. Rowe Price
Hires Senior DC Strategist
T. Rowe Price Hires
Senior DC Strategist
Linda Delivorias
has joined T. Rowe Price as a senior
defined contribution (DC) strategist. She will consult with key institutional clients
on a variety of topics including plan governance, plan design and fiduciary
policy. She will also serve as a subject matter expert and DC industry thought
leader for the firm.
Most recently, she was a partner at Mercer with broad
responsibilities in the DC and financial wellness areas. There, Delivorias led
a team responsible for evaluating plan sponsor retirement program design and
governance structures, conducting service provider evaluations and searches,
and developing training materials about various 401(k) topics. Earlier in her
career, she worked at Deloitte as an employee benefits tax manager and as an
Employee Retirement Income Security Act (ERISA) attorney at Washington, D.C. law firms.
“T. Rowe Price remains committed to providing excellent
service to our growing roster of clients,” says Aimee DeCamillo, head of T. Rowe Price Retirement Plan Services. “We
continue to place a high priority on nurturing our strong existing talent as
well as attracting top talent from outside the firm. Linda is widely recognized
and respected in the retirement industry and her vast knowledge and proven
skill set will be a significant addition to our team.”
NEXT: MassMutual
Hires Three New Regional Managing Directors
MassMutual Hires
Three New Regional Managing Directors
Massachusetts Mutual
Life Insurance Co. (MassMutual) has appointed three new managing directors
(MDs) to support sales of retirement plans in the Northeast, Manhattan and West
Virginia.
MDs train and educate financial advisers about MassMutual’s
retirement plan products and services, identify retirement plan prospects, and
help clients understand how MassMutual can meet their retirement plan needs.
Chris Burnett
supports sales of retirement plans to small businesses in Manhattan.
Previously, Burnett was a business development director with John Hancock
Retirement Plan Services. He has a bachelor’s
degree from Emory & Henry College. He also holds Series 7 and 63 securities
licenses as well as variable Life insurance licenses in New York, New Jersey
and Connecticut.
Arthur “Anthony” Maher
Jr. partners with key advisers and
consultants who sell bundled and TPA retirement plans to small businesses,
focus on the defined contribution investment only market, or support voluntary
worksite benefits in West Virginia. Maher joined MassMutual from Hazlett, Burt & Watson, Inc., where he
worked as a wealth manager. Previously, he worked as a wealth adviser for
United Bank. He earned a bachelor’s degree
from West Virginia University at Parkersburg and has FINRA Series 7 and 66
securities licenses, as well as a West Virginia life and health insurance
license.
Sarah Elliott
supports sales of retirement plans to mid-size and larger employers in the
Northeast, including Connecticut, Western Massachusetts, Vermont and upstate
New York. She has more than 20 years’
experience in the retirement plans and financial services marketplace,
primarily at MassMutual. Elliott has a bachelor’s degree from the Westfield
State University. In addition, she holds Series FINRA Series 7 & 63
securities licenses.
“Our managing directors are the backbone of MassMutual’s
growth as a retirement plan provider and help us deliver on our commitment to
help people realize their retirement goals,” says Hugh O’Toole, head of Workplace
Distribution. “Our MDs work closely with financial advisers and support their
efforts to help employers offer the most effective retirement plans possible.”
NEXT:
Lockton Expands Northeast Practice
Lockton Expands
Northeast Practice
Lockton announced
the addition of Bert Kingsley as a retirement consultant in its
Northeast Practice.
A 20-year veteran of the retirement industry, Kingsley spent
his last 12 years as principal and growth leader for Mercer’s Eastern U.S.
Defined Contribution Marketplace.
Kingsley holds FINRA, Life Accident, and Health Insurance licenses and
has completed numerous American Society of Pension Actuaries exams. He has expertise
in qualified and nonqualified plans. He’s versed in various topics including
compliance, private equity, mergers and acquisitions, financial wellness, and
investment advice.
“Asking Bert to join the Northeast Practice reflects a
deepening commitment to our clients,” says Washington, D.C.-based Robert Connolly, CEO of Lockton’s Northeast
Practice. “The employers we serve want holistic advice about risk
management, including their benefits liabilities. Bert is the third retirement
consultant we’ve brought into the northeast in just over two years. His
addition speaks to the importance of retirement to our clients, and his
expertise is indicative of the caliber of consulting our customers have come to
expect.”
NEXT: Mercer Supports Tution.io As Student Loan Repayment Benefit Provider
Mercer Supports Tution.io As a Student Loan Repayment Benefit Provider
Tuition.io, an
employer-funded student loan contribution platform, has been named a preferred
provider by Mercer. The global
consulting firm will showcase Tuition.io as a preferred provider of student
loan repayment assistance to its clients as part of Mercer’s Financial Wellness
offerings. It will continue to conduct ongoing monitoring to ensure optimal
performance. Mercer clients can take advantage of competitive pre-negotiated
fee arrangements.
Student loan repayment assistance has the potential to
affect more than 44 million Americans burdened by student loan debt, Mercer says. The $1.4
trillion debt has raised financial stress throughout the workforce and that
burden is bleeding into productivity and company bottom lines. Mercer’s Inside
Employees’ Minds Financial Wellness survey found that on average, employees
spend more than 150 hours of work time a year worrying about money. On a total
U.S. wage bill of $5 trillion, this could be costing their employers more than
$250 billion in lost wages each year. However, the survey also found that
employees who have access to financial wellness programs report higher levels
of trust and satisfaction with their employer.
“We are seeing an increasing number of employers adding
student loan repayment assistance to their benefits programs as a powerful
differentiator in attracting and retaining employees,” says Heather Coughlin, solution leader for
Financial Wellness at Mercer. “Being able to name an innovator like
Tuition.io as a preferred provider is another step forward in helping our
clients compete for talent, differentiate their brand, and develop holistic
financial wellness programs.”
Following years as a partner, Cleveland Hauswirth Investment Management has joined ABG Retirement Plan Services (ABGIL).
“Our two groups have worked together for over 16
years,” says John Blossom, CEO, ABGIL.
“Cleveland Hauswirth has a reputation for providing high-quality investment
advisory service to retirement plans, and our companies share similar values
and offer complementary skills and expertise. This move positions ABGIL for
continued growth.”
The timing of the merger aligns with a shift in
leadership as retirement industry veteran Roy
Hauswirth retires. Nancy Cleveland,
along with her team, will continue to operate the Cleveland Hauswirth office in
Milwaukee, Wisconsin, providing services to ongoing and future clients. ABGIL
provides an environment for the Cleveland Hauswirth team to continue to work as
an independent fiduciary.
NEXT:
Russell Investments Names Managing Director
Russell Investments Names
Managing Director
Michael Hall has
joined global asset manager Russell Investments
as managing director. Hall leads a team
of investment experts with deep industry experience across the firm’s many
areas of expertise including asset management, outsourced chief investment officer (OCIO), and consulting and
implementation services. The team will focus on identifying and mitigating
risks in defined benefit (DB), defined contribution (DC) and health care
retirement plans, particularly in the larger end of the market. Hall will
report to Bryan Weeks, head of Americas
Institutional.
“This team brings together Russell Investments’ core
capabilities—from advice and investments to implementation—in order to help the
world’s largest retirement plans understand and resolve plan risk,” explains
Weeks. “This team deeply understands the risk footprint of a plan and is able
to assess implications for corporate sponsors, including impact on balance
sheet, income statement and cashflow, and then develop thoughtful, long-term
solutions.”
Hall’s areas of expertise include plan governance, investment
policy review, asset allocation modeling and implementation, and liability
hedging.
Before rejoining Russell Investments, Hall was the West
Division leader for Towers Watson Investment Services at Willis Towers Watson.
While there, Hall led the Advisory Portfolio Group (APG). He’s spent 12 years at Russell Investments, where
he’s served in various roles including director of investment strategy,
director of asset liability strategy and senior consultant.
USI Consulting Group
has announced that Jesse Grams has
joined the company as vice president of retirement services, based in Phoenix,
Arizona.
Grams brings to his new role more than 20 years of sales and
consulting experience, which includes 10 years of retirement knowledge working
with both defined benefit (DB) and defined contribution (DC) plans.
Previously, Grams spent seven years with a large firm as
part of the major accounts retirement team. His primary responsibilities
included retirement plan sales and adviser sales, as well as working plans under ERISA.