Press Release

Empower Retirement Acquires Truist Retirement Plan Recordkeeping Business

Issued by Empower

Jan. 6, 2021

GREENWOOD VILLAGE, Colo. & CHARLOTTE, N.C.--(BUSINESS WIRE)--Empower Retirement (“Empower”), the nation’s second-largest retirement services provider,1 and Truist Bank today announced they have entered into a definitive agreement that expands and enhances retirement plan services for the heritage SunTrust retirement plan participants and the employers who sponsor them.

Under the agreement, Empower will acquire the heritage SunTrust 401(k) recordkeeping business, which includes approximately 300 retirement plans consisting of more than 73,000 plan participants and $5 billion in plan assets. The terms of the transaction were not disclosed. The transaction is expected to close during the first quarter of 2021.

Empower currently provides recordkeeping services for Truist through its private-label retirement plan unit, Empower Institutional. Because of this long-standing relationship, which spanned more than 20 years, the transition is expected to be seamless and will not require conversions.

“We are excited about the opportunity to provide a smooth transition for these retirement savers and an enhanced customer experience that benefits both retirement plan participants and their employers,” said Edmund F. Murphy III, Empower Retirement President and CEO. “With this transaction, we will continue to expand our capabilities, enhance our financial wellness and advice offerings, and accelerate our value creation for all our stakeholders.”

In addition to the Empower acquisition of the heritage SunTrust 401(k) plan recordkeeping business, Resources Investment Advisors LLC (dba OneDigital Investment Advisors - “OneDigital”) will serve as the advisor to a majority of the plans that Empower will administer.

Empower provides retirement services, managed accounts, financial wellness and investment solutions to plans of all types and sizes. Empower offers an integrated financial technology toolset, a commitment to customer service and an advisor-centric offering that have been the hallmarks of the company’s highly successful retirement plan solutions.

The transfer of the heritage SunTrust retirement business is the latest chapter in Empower’s expansion through acquisitions. On Jan. 4, 2021, Empower announced that it had completed the acquisition of the MassMutual retirement plan business. The acquisition increases Empower’s participant base to more than 12 million and retirement services recordkeeping assets to approximately $884 billion administered in approximately 67,000 workplace savings plans.2

In August 2020, Empower announced it had completed the acquisition of Personal Capital, a registered investment adviser and wealth manager. The combined firm will serve retirement plans sponsored by a broad spectrum of employers. On Sept. 29, 2020, Empower announced that it was acquiring Fifth Third Bank, National Association’s retirement plans, providing recordkeeping and administrative services.

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