Pan-American Life Leaving 401k Business; To Sell Retirement Unit
Pan-American Life is getting out of the 401k operations business and has signed a letter of intent with Securian Retirement Services to sell its retirement plan business to them. Pan-American will reduce staff by 124 employees, or 11 percent of their work force.
"After much review, planning and change over the past year, we determined that Pan-American could not reach the critical asset scale needed to reach profitability in the small- to mid-sized plan market," said Jan Jobe, president and CEO, Pan-American Life in a press release. "Securian is well respected and highly rated. Our clients are in good hands."
According to an Associated Press report, the company would no longer administer and provide recordkeeping services for small- to medium-sized 401k plans. Pan-American will continue to market larger plans with assets of $5 million or more.
Other press reports indicate that the business that Pan-American is exiting provided administration and recordkeeping for 1,187 small company retirement plans, with total assets of $769 million.
Securian Retirement Services is a business unit of Minnesota Life. Minnesota Life CEO Robert Senkler said in a statement that "Pan-American's retirement plan business has all the characteristics we look for in an acquisition. Our client profiles are similar and our marketing and service systems are structured similarly. Moreover, this acquisition gives us opportunities to benefit from economies of scale."
Rick Meigs, Publisher, 401khelpcenter.com, LLC
###
401khelpcenter.com, LLC is not the author of this press release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this press release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
