Deals & People March 26, 2021

Retirement Industry People Moves

OneAmerica hires industry veteran for East Coast sales territory; Ameritas announces new officer elections; AIG Retirement Services names new hires to consultant relations team; and more.

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Art by Subin Yang

OneAmerica Hires Industry Veteran for East Coast Sales Territory 

OneAmerica has welcomed an experienced financial services professional as regional sales director to build the company’s three-state base in Philadelphia.

Justin J. Sabol is a 21-year financial services veteran who previously spent 17 years as managing director for MassMutual Financial Group, where he worked with Eastern Pennsylvania and Delaware clients and financial advisers and third-party administrators (TPA). At OneAmerica he’ll continue to service core plans in those states, as well as New Jersey.

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“Justin understands the crucial connection between relationships and results, and he has built a track record of satisfied advisers and TPAs,” says Pete Schroedle, vice president for distribution, retirement services, at OneAmerica. “His approach is aligned to our mission, and his can-do attitude matches our culture.”

Sabol reports to Todd Smiser, East Region regional vice president. Sabol began at OneAmerica this month.

“OneAmerica has a vibrant reputation in the industry, with its service mindset, reputation for sophisticated but flexible plan design and an award-winning client focus rooted in education and outreach,” Sabol says. “I’m thrilled to join the team and continue the momentum with a receptive market.”

Sabol, his wife and three children reside in Chester County, Pennsylvania. Sabol spent nine years at The Hartford and two years at Lincoln Financial Group.

Ameritas Announces New Officer Elections 

Ameritas president and chief executive officer Bill Lester has announced the following officer elections, effective March 1.

Michael R. Gatliff was elected vice president – investments. His previous position was director, investments – portfolio management.

Gatliff earned a bachelor’s degree in international business from Nebraska Wesleyan University in Lincoln, Nebraska. He holds the CFA (Chartered Financial Analyst) professional designation and serves on the CFA Society of Nebraska board of directors.

Steven K. Isaacs was elected vice president – business development and wholesale distribution for the group division. His previous title was regional vice president – business development.

Isaacs earned a bachelor’s degree in business administration from the University of Nebraska-Lincoln. He holds the professional designation of LLIF (LIMRA Leadership Institute Fellow) and is a licensed life and health insurance agent.

Lined P. Mason was elected vice president – service for the individual division. Her previous title was vice president – policy services.

Mason earned an associate degree in business management from LaGuardia Community College and a bachelor’s degree in business management from St. Francis College, New York. She holds the professional designation of ACS (Associate, Customer Service) and the FINRA Series 6, 26 and 63 securities licenses. 

She serves on the board of directors for the YMCA of Greater Cincinnati’s Youth Development Board and is also Project Owner/Agile process certified.

Nathan D. Rivera was elected second vice president – digital products and channels. His previous position was director – digital and social media.

Rivera earned a bachelor’s degree in interactive digital media with an emphasis in visual imaging from Northwest Missouri State University in Maryville, Missouri. He is a member of the American Marketing Association and Association of National Advertisers.

Corey A. Vondrak was elected second vice president – creative services. His previous title was director – creative services.

Vondrak earned a bachelor’s degree in graphic design from Wayne State College in Wayne, Nebraska. He is a member of the American Institute of Graphic Arts, American Marketing Association and Association of National Advertisers.

Blinda D. Weber was elected vice president – information technology. Her previous title was vice president – service.

Weber earned a bachelor’s degree from Doane University in Crete, Nebraska. She holds the LLIF professional designation and Project, Program and Portfolio Management Certification.

Weber serves on LOMA’s business systems committee and LIMRA’s digital systems committee.

AIG Retirement Services Names New Hires to Consultant Relations Team

Heather Peters and Vince Pigati have joined the consultant relations team at AIG Retirement Services.

Peters has been named vice president, consultant relations for the Southeast, and Pigati has been named vice president, consultant relations for the Midwest. Both will report to Robert Haverstrom, head of consultant relations, AIG Retirement Services. 

“AIG Retirement Services has an unwavering commitment to helping consultants build stronger retirement plans for their clients and achieve brighter futures for their clients’ employees,” says Haverstrom. “We are excited to have Heather and Vince on the team and know they will work collaboratively with retirement plan consultants to help employers optimize their plans with the goal of improving outcomes for their employees.”

Before joining AIG Retirement Services, Peters was vice president, retirement plan consulting relationship manager with BB&T. She previously held senior consultant relations and client relations positions with Lincoln Financial Group and North State Financial Management. Peters is an Accredited Investment Fiduciary (AIF), Chartered Retirement Planning Counselor (CRPC) and Chartered Retirement Planning Specialist (CRPS).

Pigati joins AIG Retirement Services from Lincoln Financial Group, where he served as relationship manager for clients including nonprofit hospitals and universities, governmental plans and corporations. He has earned his ASPPA Qualified 401(k) Administrator and Tax-Deferred/Government Plan credentials.

Northern Trust Front Office Solutions Adds New Leaders

Northern Trust Front Office Solutions has added Nichole Mann as head of operations administration and Nora Tiller as head of client solutions.

Front Office Solutions is an integrated, cloud-based service and data platform that enables investment offices to view and analyze data from disparate sources across all asset classes in one central repository. It serves complex asset owners including foundations, endowments, family offices, pensions and outsourced chief investment officers (OCIOs) with the data they need, in the format they need it, enabling them to make informed decisions that help them excel at their strategies and optimize performance.

“Complex asset owners have complex portfolios. In addition to demanding great technology, our clients deserve high-touch services delivered by industry experts, especially those who have walked in the shoes of our clients,” says Melanie Pickett, head of Front Office Solutions. “Adding Nora and Nichole to our already talented team deepens the service we deliver to our clients and allows us to offer the thought leadership and expertise our clients demand.”  

As head of operations administration, Mann will be responsible for functions including operational data governance, data quality and process oversight, policy development, and data analysis. Prior to joining Northern Trust, Mann worked at several U.S.-based hedge funds where she managed business unit control, valuation control and documentation, operational risk management, and financial reporting and management. She formerly served as a vice president with Morgan Stanley where she focused on credit derivatives and structured credit products.  

Tiller, as head of client solutions, will match resources with client needs, assessing team development and further developing the client servicing model. Tiller comes to Northern Trust from Georgetown University, where she served as director of investment operations for the university endowment, managing investment accounting, performance analytics, risk measurement, financial reporting and compliance. She previously served as managing director of financial accounting and compliance at Red Cross Investments, and as manager of finance and administration at Howard Hughes Medical Institute.

Klinefelter Wilson Rejoins Groom

Jeanne Klinefelter Wilson, who led the Department of Labor (DOL)’s Employee Benefits Security Administration (EBSA) from 2017 until earlier this year in the roles of acting assistant secretary and deputy assistant secretary, has rejoined Groom Law Group as a principal, serving as counsel to plan sponsors and plan fiduciaries in its plan sponsor group.

She has had nearly 30 years of experience working with employee benefit plans since her first job as an employee benefit plan auditor with a major public accounting firm. She has served as ERISA [Employee Retirement Income Security Act] counsel for more than 20 years. Her practice extends to all types of employee benefit plans, including both qualified and non-qualified retirement plans and welfare plans.

At the DOL, Klinefelter Wilson took a hands-on approach to management by serving as a member of the regulatory, exemption, outreach and enforcement teams. She has in-depth knowledge of the regulatory process and the role that each level of the executive branch plays in that process. Her inside view on all steps of the DOL investigation and enforcement approach allows her to provide unparalleled advice to clients facing a DOL investigation. She also has significant experience in the DOL prohibited transactions exemption process as a result of her tenure at EBSA.

Klinefelter Wilson left the DOL when Ali Khawar was sworn in as principal deputy assistant secretary of the EBSA on January 20.

Khawar is currently the acting agency head. He has extensive government experience and has previously served in a variety of roles at the DOL, including as an EBSA investigator, in EBSA’s Office of Enforcement, as EBSA’s chief of staff in two administrations, and as a counselor to the 26th secretary of labor, Thomas E. Perez. Khawar has a bachelor’s degree from Johns Hopkins University and a law degree from Emory University School of Law.

The Hartford Rejects Acquisition Offer From Chubb

The Hartford has announced that its board of directors, after consultation with its financial and legal advisers, has unanimously rejected Chubb Limited’s unsolicited proposal to acquire The Hartford.

Chubb presented The Hartford with a proposal for a combination of the two companies on March 11. Soon after, The Hartford announced its board was carefully considering the proposal.

The Hartford said its board determined that entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders. The board reaffirmed its commitment and resolve in the continued execution of The Hartford’s strategic business plan.

Compliance March 26, 2021

EBRI Data Spotlights Pernicious Savings Gaps by Race, Ethnicity

The research organization says its latest analysis provides an important and sobering benchmark as policymakers and employers seek to address inequities in savings across races and ethnicities.

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The Employee Benefit Research Institute (EBRI) has published a fresh crop of data looking at the breakdown of retirement savings across the different racial and ethnic groups comprising the U.S. workforce.

EBRI says the data represents yet another clear piece of evidence that not every race/ethnic group is amassing similar levels of wealth within individual account retirement plans such as 401(k)s. It is derived from the Survey of Consumer Finances (SCF), which is the Federal Reserve’s triennial survey of wealth.

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According to EBRI’s analysis of the SCF data, just over half of families had an individual account-style retirement plan in 2019 (50.9%). However, the likelihood of having a retirement plan is significantly lower for families with Black/African American family heads than for families with white, non-Hispanic heads. Specifically, 57.2% of the latter and 34.9% of the former report owning some type of individual account savings plan.

EBRI reports the discrepancy is even greater for families with Hispanic heads. The data shows fewer than half as many (25.5%) families with Hispanic heads reported having retirement plan assets compared with families with white, non-Hispanic heads. EBRI also reports that these disparities have changed only marginally since 2010, showing the persistence of the issue.

EBRI finds families with Black/African American or Hispanic heads who did have a retirement plan also reported significantly lower median account balances than families with white, non-Hispanic heads. As of the end of 2019, EBRI reports, the median account balance of families with white heads was $80,000, versus $35,000 and $31,000 for families with Black/African American heads and Hispanic heads, respectively.

EBRI’s analysis concludes that families with minority heads are generally in a much worse position in their preparation for retirement in terms of individual retirement plan assets. As a result, EBRI says, these families are likely to have much less flexibility in financing retirement.

“Recognizing this, policymakers and employers appear to be placing a greater emphasis on addressing the inequities across races and ethnicities,” the analysis suggests. “Financial well-being programs can help address these disparities, particularly as employers develop holistic programs that address the full financial picture of employees and tailor these programs to the employees using them.”

EBRI’s analysis follows on the heels of a report published by the Investment Company Institute (ICI) showing total retirement plan assets grew to $34.9 trillion as of December 31, which is up 7.5% from the end of the third quarter of the year and up 9.3% overall for last year. With such strong growth for the year, the ICI reports, retirement assets accounted for a third of all household financial assets in the United States at the end of December.

The ICI update shows that assets in individual retirement accounts (IRAs) totaled $12.2 trillion at the end of the fourth quarter of 2020, while defined contribution (DC) plan assets were $9.6 trillion, up 6.8% from September 30.

Such growth figures would have been impressive in a “normal” year for the markets and the U.S. and global economies. But in the context of the ongoing coronavirus pandemic, which has now killed in excess of 525,000 Americans and caused historic surges in unemployment, the figures are even more notable. As various sources have discussed with PLANADVISER, the past year has made doubly clear the fact that the markets and the economy are not one and the same thing.

As demonstrated in the EBRI data, the past year (and decade) has also clearly demonstrated just how severe income and overall wealth inequality are in the United States. To be sure, since the global financial crisis of 2007 and 2008, U.S. households in the aggregate have come a long way in strengthening their balance sheets. Yet the distribution of wealth is highly unequal—about as unequal as it has ever been—and such research shows not everyone is able to participate in the growth of retirement plan assets.

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