The US state of Hawaii has renewed its contract with Prudential Retirement, a unit of insurance giant Prudential Financial, to manage Hawaii Deferred Compensation, containing nearly $2.4bn in retirement assets covering about 27,919 members.
Prudential Retirement has been overseeing the state’s deferred compensation plan since 2013. The renewed recordkeeping contract, valid for a period of three years, will come into force from 1 April 2018.
Wendy Young Carter and Glenn Ezard of Segal Marco Advisors are serving as the consultants for the plan.
Prudential Retirement head of client relations and business development Michael Knowling said: “Recently, we’ve seen a significant uptick in public sector employers, both new and existing clients, choosing to partner with us to help their employees achieve financial wellness.
“Hawaii’s decision to retain us is indicative of the retirement outcomes we’re driving for their participants and our understanding of their workforce needs.”
Recordkeeping assets for Hawaii’s 457(b) plan have surged from $1.7bn to nearly $2.4bn over the last five years.
The plan provides numerous investment and plan design features including GoalMaker, Prudential Retirement’s asset allocation tool; and a custom stable value fund co-managed by Invesco and the Fixed Income Group at Jennison Associates to help participants build retirement savings.
Very recently, the state of Vermont selected Prudential Retirement as third-party administrator for the state’s five defined contribution plans, totalling $576m in plan assets.
Additonally, Jersey City, New Jersey, also renewed their contract with Prudential Retirement for its $208m governmental retirement plans.