Deals & People November 15, 2007

Adviser Partners with TPAs in Management of Cash Balance Plans

Kravitz, a consultant in the design, implementation, and management of cash balance pension plans, has introduced the Cash Balance TPA Partners Program.
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The Cash Balance TPA Partners Program is developed exclusively for TPAs (third-party administrators) to meet the unique needs and complexities of cash balance plans, according to a press release. Available to retirement plan TPAs nationwide, the Cash Balance TPA Partners Program, features customized design, implementation, and administration strategies and are supported by a team of Kravitz experts who focus exclusively on the highly complex market niche of cash balance plans.

“The question is not whether Cash Balance Plans will become common in highly profitable companies, but rather which TPAs will be there to help them,” said Dan Kravitz, President of Kravitz, in the announcement. “The Cash Balance TPA Partners Program will help TPAs strengthen and expand their existing relationships and provide them with a powerful new program for their potential new clients.’

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For more information on the Cash Balance TPA Partners Program, contact Ken Guidroz at 818-379-6165.

Products November 15, 2007

AIG VALIC Rolls Out 403(b) Investment Advisory Services

AIG VALIC has unveiled Portfolio Director Ibbotson Solutions, a new service that provides certain 403(b) plan sponsors with independent, third-party expertise in the selection and oversight of their plans' investment choices.
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The new service is part of an agreement with Ibbotson Associates, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., to launch the new 403(b) product enhancement for the K-12 education market.

As part of the Portfolio Director Ibbotson Solutions service, Ibbotson will create and monitor a list of investment options derived from the offerings available in VALIC’s Portfolio Director variable annuity. The list will be reviewed and updated periodically to ensure that the funds continue to meet Ibbotson’s rigorous criteria. Ibbotson will monitor both quantitative factors, such as fund performance, as well as qualitative factors including changes in fund managers and investment philosophies, potential regulatory actions and other relevant investor information.

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Previous Collaboration

Portfolio Director Ibbotson Solutions is a continuation of VALIC’s previous collaboration with Ibbotson to bring independent advisory services to the 403(b) market. In 2003, AIG VALIC launched independent third-party investment advice and automated portfolio management services under the SunAmerica advisory opinion from the U.S. Department of Labor. Ibbotson Associates provides the investment advisory services for these Guided Portfolio Services (see AIG VALIC to Offer Advice, Third-Party Management), which today has more than $7 billion in assets under management, according to a press release.

AIG VALIC is the marketing name for the group of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

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