The deal will mean that Great-West will assume additional servicing and custodial responsibilities for approximately 340 plans, representing about 64,000 participants. Great-West has already been supporting Franklin Templeton’s recordkeeping business since 2006 through its affiliate FASCore, LLC.
“This agreement reinforces our position as one of the top retirement plan providers in the United States ,” said Raymond McFeetors, president and CEO of Great-West Lifeco, in a news release . “It demonstrates our commitment to the corporate retirement plan marketplace, where we’ve earned a reputation as an innovative and growing player.”
The transaction is expected to close in the fourth quarter of 2007.
In total, GWLA provides retirement plan services to 21,000 401(k), 401(a), 403(b), and 457 plans, representing approximately 3.5 million participants and $104 billion in assets.
In early February, Great-West announced it would be acquiring Putnam Investments from Marsh & McLennan (See It’s Official – Great-West Picks Up Putnam ). That followed the 2006 acquisition of the 401(k) retirement plan business of U.S. Bank (See Great-West Sweeps Up More 401(k) Business ) and MetLife (See Great-West to Acquire MetLife 401(k) and DB Business ).