Alliance Benefit Group Division Latest BenefitStreet Selloff

July 10, 2008 ( - Benefit Plans Administrative Services, Inc. (BPAS), a subsidiary of Community Bank System, Inc., has acquired the Philadelphia division of Alliance Benefit Group (ABG) MidAtlantic from BenefitStreet.

BPAS provides daily valuation, actuarial and employee benefit consulting, cafeteria plan, and institutional trust services. According to a press release, the acquisition will give BPAS revenues approaching $30 million, administration of more than 200,000 defined contribution and flexible spending participant accounts, more than 300 actuarial engagements, and custody of nearly $4 billion in retirement plan assets.

In addition, the acquisition will strengthen ABG’s product offerings, John Van Buren, MSPA, President of ABG – MA, said in the announcement.

The deal is part of a restructuring of BenefitStreet in order to streamline its business as a defined contribution plan recordkeeper. BenefitStreet began selling of its third party administrator (TPA) subsidiaries in April (See BenefitStreet Begins Shedding TPAs ). The following month the company announced it had obtained key financing for its restructuring efforts (See BenefitStreet Restructuring is Moving Right Along ).