First Premier Bank hired Empower Retirement as its new record keeper and selected a managed account as the qualified default investment alternative for its $173 million 401(k) plan, said Colleen Stratton, the bank's assistant vice president of total rewards.
The Sioux Falls, S.D., bank shifted the plan to Empower from Alerus Retirement and Benefits to take advantage of Empower's technology and participant services, Ms. Stratton said.
The managed account uses Empower's new adviser managed account technology platform, which allows the bank's fiduciary adviser to the plan — intellicents — to consider more than just age when developing participant portfolios, Ms. Stratton said.
Brad Arends, CEO of intellicents, added that the new technology builds on intellicents' risk-based model portfolios and takes into account factors such as current balance, contribution rates, employer match, gender, salary, expected Social Security benefits, and a participant's outside assets and spending habits.
First Premier is the intellicents' first client to adopt the managed account option as its QDIA. Of the 2,100 participants in First Premier's 401(k) plan, only 14 opted out.