With the acquisition, Great-West will become the provider to 649 401(k) plans previously serviced by the Federated division, according to a news release. Great-West said all of Federated’s 401(k) clients were given the option of transitioning to Great-West or moving their business to another provider and nearly 87% elected to transition to Great-West.
The acquisition came after Federated Insurance elected to discontinue its group retirement plan business after determining that clients would be better served by a retirement services partner able to provide the product diversity and level of service that its customers are increasingly coming to expect, according to the news release. Federated Insurance will not be getting out of the retirement plan provider business entirely though as the company plans to continue selling and servicing Simplified Employee Pensions, IRAs and non-qualified plans
The conversion of plan and participant accounts was completed on November 15, 2003.