According to an announcement, New York Life has just begun using predictive modeling software, allowing it to determine which active 401(k) participants are most likely to roll assets from an outside 401(k) or an outside IRA into their 401(k) administered by New York Life. Some of the predictors of potential roll-in candidates include their tenure, number of loans, and frequency of Web logins, the company said.
With help from the modeling software, New York Life can reach out to participants through targeted marketing such as direct mail.
This spring, a total of 23,250 active participants were solicited by a direct mail piece highlighting the benefits of account consolidation, and providing step-by-step instructions on how to roll money from their past employer’s plan into their New York Life plan. Solicited participants proved about 50% more likely to roll assets in than the overall population and 36% more likely than the control group to do so, according to the announcement.
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