Skip to main content

You are here

Advertisement

Transamerica Picks Up Mercer's DC Admin Business

In the latest consolidation move among record keepers, Mercer has announced a “strategic alliance” with Transamerica whereby Transamerica will acquire Mercer’s U.S. defined contribution administration book of business, and also become Mercer’s preferred DC record keeping provider.

And it’s going to happen quickly. According to a press release, the transaction is expected to close by the end of 2015.

Despite Mercer’s size and reach as an HR consulting giant, their DC business was relatively small, and only 1% of their plans were advisor-sold, according to PLANSPONSOR’s 2015 Recordkeeping Survey. That’s a sharp contrast with Transamerica Retirement Solutions, which supports a predominantly advisor-sold book.

Mercer’s U.S. DC administration business currently has more than $71 billion in plan assets, 148 clients and more than 917,000 participants. Mercer uses the SunGard Omni record keeping software, while Transamerica uses a proprietary platform.

In announcing the change, Ken Haderer, Mercer’s COO, took pains to “…clearly state that we are committed to continuing to provide best of class service to our defined benefit and health clients through our own solutions,” while saying the consulting firm would “…partner with Transamerica for our defined contribution recordkeeping administration business."

Mercer’s decision is just the latest in a series of consolidations, sales and acquisitions announced this year.

PLANSPONSOR’s data also indicates that, among the 369 plans administered (as of 2014), 30 were less than 10 participants, 91 were in the 10-100 participant range, 125 included 101-1,000 participants, 70 in the 1,001 – 5,000 participant market, and the remaining 53 had 5,000 participants or more.

Advertisement