What's in a name? Ask the new guys running New York Life Investment Management LLC's retirement business - or, as the New York Life subsidiary heads would like the retirement business to be known, NYLIM Retirement Plan Services.
Two retirement-related business units are being put together under the new moniker: The new small-plan division, and the mid- to large plan defined contribution, defined benefit and Taft-Hartley business, which had been known as New York Life Benefit Services LLC.
Tom Clough, who ran New York Life Benefit Services will continue running the mid-to-large plan retirement side. The small plan business, covering plans with $15 million to $500 million, is headed by Sam Mancino, who takes over from Mark Brookman, now a senior manager creating new distribution opportunities for the sales groups.
Not only is New York Life changing the name of the division, but it's altering its business model as well, explained Barry Schub, senior managing director of New York Life Investment Management and head of its retirement plan services unit. It is changing to exclusive use of intermediaries, from an internal sales force, said Mr. Schub. The internal sales staff now will support the outside intermediaries.
As part of the new business model, NYLIM is combining the sales and marketing of its entire retirement plan business under a single person, Don Salama, who now is in charge of marketing and product management for NYLIM Retirement Plan Services, a new position.
At the same time, NYLIM will be bringing larger plan service to the smaller plan market.
"We're trying to leverage our service reputation (in the mid- to large-plan market)," said Mr. Schub. "Mid-market growth is not what it was 10 years ago." So, NYLIM's retirement group will be streamlining its retirement business, using technology to bring more services to smaller plans, which are more likely to change service providers than larger plans, Mr. Mancino said
And they say the scheme is working.
"In the last three months, opportunities have increased in number and size," Mr. Schub said. "On April 30, we had 91 proposals pending worth $3 billion in assets."