The Principal Hires ESOP Consultant

The Principal Financial Group has hired Mike Parrett as vice president of consulting.

Parrett, who takes on the VP role effective August 18, will provide advanced consulting to employee stock ownership plans (ESOPs), including financial analysis and transaction structuring. He will be based in the company’s Indianapolis office.

Jerry Ripperger, vice president of consulting at The Principal, believes that Parrett’s experience in finance and ESOPs will be “instrumental in strengthening our consulting practice to better serve our clients.”

Parrett has nearly 30 years of experience in finance, treasury and operations management. Before joining The Principal Financial Group, he served as senior vice president and chief financial officer of Herff Jones, Inc., where was responsible for overseeing the company’s merger and acquisition activity, as well as finance, treasury, insurance and risk-management functions.

In addition to the perceived risk and added fiduciary burden, PEI says most recordkeeping platforms are unable to accommodate these guaranteed income products at this time. For these resons, as well as the low participant utilization, lack of portability, high participant cost and increased administrative complexity of these solutions, PEI suggests that plan sponsors wait for regularity clarity and guidance to emerge. Patient plan fiduciaries should also benefit as the investment marketplace evolves to better meet apparent demand for income solutions—whether in-plan or out.