U.S. Bank Institutional Trust & Custody plans to sell its $9 billion bundled 401(k) plan business to Great-West Life & Annuity, to be managed by its Great-West Retirement Services unit, according to U.S. Bank spokeswoman Amy Frantti. Terms were not disclosed.
The transaction is expected to close in late December, pending regulatory approval. Following the transaction, Great-West Retirement Services will provide 401(k), 401(a), 403(b) and 457 retirement plan services to roughly 21,000 plans with more than $104 billion in assets, the release said. It currently has roughly $95 billion.
"This acquisition moves us significantly closer to our goal of becoming one of the top retirement plan providers in the United States," Raymond L. McFeetors, president and CEO of Great-West parent Great-West Lifeco Inc., said in a news release. "It further enhances our presence in the corporate retirement plan marketplace, where we've earned a reputation as an innovative and growing player."
"The sale of the 401(k) business allows us to concentrate our focus and resources on businesses where we have significant scale and/or opportunity for growth," Diane Thormodsgard, president of U.S. Bank, said in a separate news release. "By industry standards today, a book of 2 to 3 million participants is necessary to support continued investment. U.S. Bank has approximately 195,000 participants."