State of Hawaii officials informed Prudential Retirement that Hawaii has renewed its contract with Prudential to oversee its State of Hawaii Deferred Compensation totaling nearly US$2.4bn in retirement assets. Prudential Retirement among the industry’s leading record keepers is a business unit of Prudential Financial, Inc.
The new three-year recordkeeping contract became effective April 1, 2018. Wendy Young Carter and Glenn Ezard of Segal Marco Advisors are the consultants for the plan.
“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,” said Michael Knowling, head of client relations and business development at Prudential Retirement. “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.”
Over the past five years, recordkeeping assets for Hawaii’s 457(b) plan have grown from US$1.7bn to nearly US$2.4bn. The plan offers several investment and plan design features to help participants build retirement savings, including:
- GoalMaker, Prudential Retirement’s asset allocation tool
- A custom stable value fund co-managed by INVESCO and the Fixed Income Group at Jennison Associates LLC, a wholly owned subsidiary of PGIM, the global investment management business of Prudential Financial
- Dedicated onsite retirement education counselors
- Online tools and resources designed to help employees achieve financial wellness
In addition, Prudential has helped workers in the State of Hawaii plan save more by holding a series of employee benefit fairs to provide education and promote participation. Since May 2017, 21% of attendees of the spring and fall benefits fairs have taken actions to save for their retirement.
“We’re pleased with how our deferred compensation plan has performed,” said Brian T. Moto, Chairperson, Board of Trustees for the State of Hawaii Deferred Compensation Plan. “Together with Prudential, we’ve been able to help our employees improve their financial well-being and better prepare for retirement.”
More recently, the state of Vermont hired Prudential Retirement as third-party administrator for the state’s five defined contribution plans, totaling US$576mn in plan assets. And Jersey City, New Jersey, renewed its contract with Prudential Retirement for its US$208mn governmental retirement plans.