MassMutual considering selling its retirement plan business

Ary Rosenbaum

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

According to a report from Reuters, Massachusetts Mutual Life Insurance Company (MassMutual) is exploring a sale of its retirement services division, which has about $175 billion of assets under management and administration.

Sources say that servicing and helping administer 401(k) plans aren’t considered a core business. MassMutual unloaded Oppenheimer Funds to Invesco for $5.7 billion less than 2 years ago.

Since 2012, we have seen quite a few large providers leave the 401(k) business (Hartford, Wells Fargo). I used 2012 as the measuring stick because that is when fee disclosure regulations went into effect and a more transparent and competitive fee landscape has made certain plan providers flourish and many others, exit stage left. We shall see if MassMutual decides to exit the retirement plan business.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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Ary Rosenbaum

The Rosenbaum Law Firm P.C. on:

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