Deals & People October 18, 2024

Retirement Industry People Moves – 10/18/24

T. Rowe hires for new role as head of insurance; Janney promotes Galvin to Midwest regional director; Simpson Thacher hires new executive compensation and employee benefits partner; and more.

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Ben Riley Promoted to Head of Insurance at T. Rowe Price

Ben Riley

Investment manager T. Rowe Price announced the promotion of Ben Riley to head of insurance at the firm, a newly created position, effective January 1, 2025.

Riley will oversee T. Rowe Price’s insurance clients in North America and will report to Doug Greenstein, head of institutional business development for the Americas. 

“Ben is perfectly suited to take on this important new role,” Greenstein said in a statement. “His extensive experience and dedication have been instrumental in establishing T. Rowe Price within the insurance sector.”

Riley, currently a senior relationship manager servicing insurance clients as part of the institutional client service team, joined T. Rowe Price in 2001. He has also worked in client service and relationship management roles at T. Rowe Price covering pension, defined contribution and other retirement plan service clients.

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“Many of our insurance clients are looking for a partner with scale who has the ability to provide customized fixed-income solutions,” Riley said in a statement. “When you combine the resources of T. Rowe Price with our service-oriented culture and the quality of our credit research platform, it makes us an ideal partner for insurance clients.”

Janney Montgomery Names Tom Galvin Midwest Regional Director

Tom Galvin

Janney Montgomery Scott LLC promoted Tom Galvin to Midwest regional director, starting January 1, 2025, from a role as complex director in Ponte Vedra, Florida, a role in which he assists with adviser growth in the region.

Galvin joined Janney in early 2024 from Raymond James, where he spent 25 years, most recently as divisional director. Galvin is replacing Jim Dornan, who is taking a role as branch leader and financial adviser.

Galvin will oversee Janney’s private client group offices in Ohio, Michigan, New York, western Pennsylvania and West Virginia. He will work with the firm’s advisers to support and develop their practices, as well as recruit.

Dornan will join the adviser team at Janney’s McCoy Wealth Management Group in Ligonier, Pennsylvania, as senior vice president of investments and branch leader, effective January 1, 2025, after more than 12 years as Western regional director.

Simpson Thacher Hires Executive Compensation and Employee Benefits Partner

Gillian Emmett Moldowan

Simpson Thacher & Bartlett LLP has hired Gillian Emmett Moldowan as a partner in the executive compensation and employee benefits practice in its New York office.

She joins from A&O Shearman, where she was global co-head of its compensation, employment and governance group.

Moldowan will advise companies, boards of directors, executives and investors on transaction-related compensation and benefits matters, with a focus on mergers and acquisitions for public companies and private equity firms, as well as initial public offerings and other capital markets transactions. In addition, she will advise on governance, securities laws and disclosure related to public company compensation matters.

Nationwide Retirement Hires New Regional VP for Emerging Markets

John Frisvold

Nationwide Retirement Solutions hired John Frisvold as regional vice president of emerging markets covering Minnesota and Wisconsin; Nationwide’s emerging market covers adviser-sold 401(k) plans with fewer than $25 million in assets.

Frisvold joins the firm from a role as a retirement sales consultant at Alerus. He will report to Rob Kissler, division vice president of emerging markets for the Central region. 

“With nearly two decades of experience in the financial services industry specializing in retirement plans, John brings vast expertise in compliance, plan design, and fiduciary duties to his role,” Kissler said in a statement.

 Nationwide Retirement administers nearly 32,000 retirement plans representing $200 billion in participant assets and 2.7 million participants.

Newton Investment Hires 2 New Senior Leaders

Laura Curtis

Britta Hion

Newton Investment Management, part of BNY Investments, announced the appointments of Laura Curtis as head of global product and marketing and Britta Hion as head of North American distribution, two newly created roles.

“We are delighted to welcome Laura and Britta to Newton,” said Euan Munro, Newton’s CEO, in a statement. “As we look to enhance our footprint as a global asset manager, their combined expertise in leadership, sales and product management, alongside established network relationships, will be invaluable in helping us to continue to deliver our clients’ desired investment outcomes.”

Curtis was chief marketing officer and head of marketing for Europe at Vanguard Asset Management from 2018 through 2022, based in London, and was global chief marketing officer and head of marketing at Jupiter Asset Management. She also held senior marketing positions at AllianceBernstein. Curtis will remain based in London and will report to Munro.

Hion was previously the head of North America distribution at Barings and held multiple roles at BlackRock, most recently as global co-head of the firm’s alternatives client platform. Hion, based in New York, will report to Tjeerd Voskamp, Newton’s global head of distribution.

View Points October 18, 2024

Financial Security First

The case for plan advisers to integrate SECURE 2.0 emergency savings solutions.

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Employers are increasingly focused on strengthening the financial well-being of their workforce. While retirement remains a critical benefit, it is often unattainable for many low-and moderate-income workers, in part due to other pressing financial needs. One viable solution to this problem has been gaining traction in the retirement plan space: emergency savings vehicles that can provide both financial cushion and peace of mind to participants.

Of respondents to BlackRock Inc.’s Read on Retirement survey, 64% agree they would save more for retirement if they had an emergency savings fund set aside—demonstrating the vital role emergency savings play in financial stability and impacting retirement planning. Retirement plan advisers must equip themselves to respond to this demand.

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For many low-and moderate-income earners, accessing liquid funds is challenging. Research shows a significant portion cannot cover a $400 expense from savings alone. This financial insecurity makes planning for retirement seem impractical. How can these households strategize for long-term goals when immediate needs, even if relatively small amounts, are unmet?

Kathleen Kelly

In 2022, Congress laid out the crucial connection between emergency savings and retirement planning through SECURE 2.0 Act of 2022 provisions. By offering solutions outlined in SECURE 2.0, like the $1,000 emergency withdrawal plan amendment, employers can assist employees in managing unexpected expenses through their retirement plans. For plan advisers, in particular, integrating workplace emergency savings products with retirement plans can enhance participation rates, decrease leakage and improve retirement plan inclusion outcomes.

Now is the time for advisers to engage plan sponsors to collaborate and identify high-quality savings options to meet this pressing employee need. Advisers have an important role to play in introducing emergency savings programs to plan sponsors and taking proactive measures to establish these benefit programs, whether in- or out-of-plan, to serve the diverse workforce of these employers. When communicated and implemented effectively, retirement-linked emergency savings solutions foster a mutually beneficial environment in which employers and employees can thrive.

Improving Retirement Participation

While 73% of U.S. workers have access to retirement plans, only 56% participate. What’s more, the disparity in retirement account balances by income and race has increased over time, with white households holding double the median balance. Offering emergency savings vehicles can be a valuable strategy to connect with a diversity of employees and serve as their first interaction with the recordkeeper, fostering trust and familiarity with the retirement plan provider among a broader segment of the workforce.

Nick Maynard

The liquidity restrictions inherent to retirement plans add to the complexity of enrollment, which is at odds with employee liquidity needs. According to a 2021 survey by Commonwealth, 65% of retirement plan adviser respondents highlighted that offering an emergency savings solution contributed to enhancing the appeal of employers’ benefits packages. Among these respondents, 60% emphasized the significant advantage of reducing employee financial stress, while another 60% acknowledged the positive impact of increasing employee engagement with the retirement plan.

By offering a liquid emergency savings option, employers can support employees’ immediate financial needs and trust in larger financial systems while strengthening their connection to the retirement plan and the opportunity to maximize the match offered by the plan sponsor.

Reducing Plan Leakage

A notable trend many plan advisers observe is the frequent utilization of retirement plans as revolving credit for small amounts. The pandemic revealed that households with at least $1,000 in emergency savings were half as likely to withdraw funds from their workplace retirement savings accounts.

Studies indicate that individuals with limited or no emergency savings are more prone to taking 401(k) loans, hardship withdrawals, or pausing or reducing contributions to their retirement plan. By providing a separate emergency savings account, recordkeepers can help alleviate the need for retirement withdrawals or loans, ultimately reducing the number of individuals resorting to early withdrawals and closures of their retirement accounts.

Improving Inclusion Efforts Through New Offerings

The vast majority of Americans, including 81% of Black Americans, firmly believe that employers have a responsibility to offer solutions to increase employees’ financial security. Plan sponsors universally recognize the distinct financial needs of lower-income employees, underscoring the importance of tailoring financial offerings to different employee segments.

To promote inclusivity within retirement plans, advisers can offer guidance to plan sponsors on strategies designed to engage new employees. Research conducted by Commonwealth as part of BlackRock’s Emergency Savings Initiative suggests that small-dollar incentives ($10 to $25) improved the likelihood of employees who earn low and moderate incomes enrolling in an emergency savings program.

As workplace emergency savings programs continue to gain momentum, advisers must fulfill their role in offering solutions to meet the financial needs of diverse workforces. This proactive approach ensures employees have the tools and resources to navigate their financial journey today and tomorrow.

The types of emergency savings programs will, of course, vary by plan sponsor needs and provider options. But plan advisers can learn more about the potential for programs from BlackRock’s philanthropic Emergency Savings Initiative, Commonwealth directly and Compass Financial Partners.

Kathleen Kelly is managing partner in Compass Financial Partners, a Marsh & McLennan Agency LLC company; Nick Maynard is a senior vice president at Commonwealth.

Securities and investment advisory services offered through MMA Securities LLC (MMA Securities), member FINRA / SIPC, and a federally registered investment advisor. Main Office: 1166 Avenue of the Americas, New York, NY 10036. Phone: (212) 345-5000. Variable insurance products distributed by MMA Securities LLC, CA OK 81142. Marsh & McLennan Insurance Agency LLC and MMA Securities LLC are affiliates owned by Marsh & McLennan Companies. Investment advisory services for MMA Prosper WiseSM are offered solely as a Registered Investment Adviser through MMA Securities. Certain of our investment adviser representatives are registered representatives of MMA Securities. A copy of our written disclosure statement discussing our advisory services and fees is available for your review upon request. Please consult a tax professional for specific tax inquiries and recommendations. The information contained herein is for informational purposes only and is developed from sources believed to be providing accurate information. The opinions expressed are those of the author, are for general information, and should not be considered a solicitation for the purchase or sale of any security or service.

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