Voya Financial, an American financial, retirement, investment and insurance company, has agreed to acquire Pen-Cal Administrators, for an undisclosed sum.
Pen-Cal offers nonqualified deferred compensation benefit plans and consulting services.
Upon the completion of the transaction, Pen-Cal will become part of Voya’s Retirement business operating unit.
It will be re-branded to Voya and clients will be able to access to an integrated enrolment and website experience.
Voya Financial CEO of retirement and employee benefits Charlie Nelson said: “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.”
With the completion of the deal, nonqualified services will be available across all of Voya’s 401(k), 403(b) and 457 plan markets. These services will be provided as an integrated solution when Voya will administer an employer’s core defined contribution retirement plan.
Pen-Cal CEO Kirk Penland said: “We have seen the demand for nonqualified deferred compensation plans increase from large employers as a result of recent tax reform. 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.”
The transaction, subject to customary closing conditions, is slated to close in the coming weeks.