PFPC Retirement Services spun off its defined contribution and defined benefit plan business that is sold through intermediaries and sold it to National Retirement Services, a new company formed by two former PFPC employees, said John M. Sciarra, president and CEO of NRS. National Retirement Services provides 2,600 plans, each of which has up to 5,000 employees, with record-keeping and administration services, he said. NRS will provide qualified retirement plan administration and record keeping to small and mid-sized plan sponsors, said Mr. Sciarra.
James Houpt, PFPC Retirement Services vice president, was named NRS executive vice president and COO. Mr. Sciarra was senior vice president and COO of PFPC.
PFPC, which had acquired the small and mid-sized plan business when it acquired First Data in December 1999, spun off the business because "it was a different market segment than PFPC needed or wanted to be, Mr. Sciarra said. The transaction is expected to close within 60 days, he added. PFPC will concentrate on larger institutional plan sponsors.