Integration of nonqualified plan services will help employers and
plan advisors deliver best-in-class retirement benefits to participants
WINDSOR, Conn.--(BUSINESS WIRE)--
Voya Financial, Inc. (NYSE:VOYA), announced today that it has entered
into an agreement to acquire Pen-Cal Administrators, Inc. (Pen-Cal), a
leading provider of nonqualified deferred compensation benefit plans and
consulting services. As a result of the transaction, Pen-Cal will become
part of Voya’s Retirement business operating unit. Terms of the
transaction were not disclosed, and are not material to Voya’s financial
position.
“As the financial wellness needs of Americans continue to evolve,
innovative compensation benefits, such as nonqualified retirement plans,
are becoming an increasingly important way for employers to attract and
reward key members of their workforce,” said Charlie Nelson, CEO of
Retirement and Employee Benefits for Voya Financial. “This acquisition
is an example of the investments we are making to facilitate growth in
our businesses, and to expand the broad set of solutions we offer to
enhance the client experience and improve financial outcomes for plan
participants. The integration of these capabilities will also provide
our plan advisor partners with the tools and resources they need to
demonstrate greater value to their clients.”
Through this deal, nonqualified services will be available across all of
Voya’s 401(k), 403(b) and 457 plan markets and offered as an integrated
solution when Voya is administering an employer’s core defined
contribution retirement plan. These best-in-class services will also be
available when an employer is looking for nonqualified plan support on a
stand-alone basis.
“We have seen the demand for nonqualified deferred compensation plans
increase from large employers as a result of recent tax reform,” said
Kirk Penland, CEO of Pen-Cal. “We also expect interest in these plans to
gain further momentum as small and mid-market companies more thoroughly
understand the impact of tax reform to both their company and their key
executives.”
Pen-Cal has over 50 years of experience designing and administering
innovative deferred compensation plans, with a focus on engaging
employees and delivering flexible solutions. The firm offers some of the
best technical expertise and system functionality in the market, with
expertise in several key areas:
-
Consultative plan design support to achieve an employer's executive
compensation goals;
-
Sophisticated funding structures for the plan, including mutual funds
and corporate-owned life insurance (COLI);
-
Tailored, best-in-class nonqualified services that include call center
support, website capabilities, and employee enrollment, education and
communication resources; and
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Plan administration and trust services built around a recordkeeping
system designed to support the most complex nonqualified plans.
“Bringing our businesses together will enable Voya to offer innovative,
non-qualified compensation benefits along with our leading qualified
plan administration services through a seamless online experience that
addresses a client’s unique needs,” said Bill Harmon, president of
Retirement Corporate Markets for Voya Financial. “Pen-Cal also
administers disability trusts, and their technical expertise can add to
the leadership we are creating in the area of special needs planning.
This supports our broader vision to make a difference in the financial
wellness and retirement outcomes for all Americans.”
Employer-sponsored nonqualified deferred compensation plans allow key
executives and other select employees to supplement their savings in
qualified retirement plans by setting aside a portion of their income on
a tax-deferred basis until a future date. A primary goal of many plans
is to recruit, reward and retain key leaders and top talent. You can
learn more about them in two upcoming webinars hosted by Voya on May
22 and May
24.
The transaction is expected to close in the coming weeks, subject to
customary closing conditions. As part of the arrangement, Pen-Cal will
re-brand to Voya and clients will have access to an integrated
enrollment and website experience.
About Pen-Cal
For more than 50 years, Pen-Cal has provided clients with the highest
level of quality and service in the design, implementation, and
administration of employee and executive benefit plans. The firm has the
ability and resources to address the unique needs of every plan and
remain on the cutting edge of recordkeeping and administrative
technology. The mission of Pen-Cal is to be the leader in design,
implementation, and administration of employee and executive benefit
programs and to provide comprehensive, customized, and technologically
innovative solutions that assist companies with recruiting, retaining
and rewarding talent.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and
protect their savings — to get ready to retire better. Serving the
financial needs of approximately 14.7 million individual and
institutional customers in the United States, Voya is a Fortune 500
company that had $8.6 billion in revenue in 2017. The company had $541
billion in total assets under management and administration as of March
31, 2018. With a clear mission to make a secure financial future
possible — one person, one family, one institution at a time — Voya’s
vision is to be America’s Retirement Company®. Certified as a
“Great Place to Work” by the Great Place to Work® Institute,
Voya is equally committed to conducting business in a way that is
socially, environmentally, economically and ethically responsible. Voya
has been recognized as one of the 2018 World’s Most Ethical Companies®
by the Ethisphere Institute, one of the 2018 World’s Most Admired
Companies by Fortune magazine and one of the Top Green Companies
in the U.S. by Newsweek magazine. For more information, visit voya.com.
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and Twitter @Voya.
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Source: Voya Financial, Inc.