ING US aims to up its 401(k) market share

Setting its sites on grabbing
a larger slice of the US corporate retirement plans sector, ING US’
Retirement Services unit has embarked on an initiative targeting
small and mid-sized corporates.

ING’s initiative has two
components. One will seek to build a network of key relationships
with local and regional banks, credit unions and plan
intermediaries who work in the banking industry.

The second component involves
establishing connections with national and regional payroll
companies to create an integrated payroll capability that
simplifies plan administration for 401(k) retirement plan
intermediaries and customers.

Head of national intermediary
distribution and service at ING Retirement Services Bill Elmslie
said in a statement: “We’re very excited about the potential for
growth in these two emerging channels. We believe this dual
approach will help deepen our relationships with distributors and
plan sponsors while expanding ING’s leadership in the small and mid
corporate market.”

ING noted that while it has
up to now conducted limited banking channel sales, it recognises
that thousands of community banks, regional banks and credit unions
are looking for opportunities to expand their business, and is now
“moving forward with a more deliberate approach to serve this
market”.

The insurer added that one
growing trend is that commercial lending officers and trust
departments see value in being able to offer 401(k) plans to their
small and mid-sized corporate clients.

In the payroll market, ING
said it is building relationships with many national and regional
payroll companies to bring a fully integrated 401(k) payroll
navigation interface named Pay with Ease to advisors, third-party
administrators (TPAs) and their clients.

According to ING US, Pay with
Ease enables it to link directly to a 401(k) plan sponsor’s payroll
provider and establish a two-way process to share key plan and
payroll contribution information, such as enrolments, contribution
rate changes, hardship suspensions, reinstatements and loan
repayments.

ING already has more than $300bn US defined contribution
retirement plan assets under management and
administration.

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