Say bye bye to several BILLION in assets and recurring premium. Talk on the street is that several enormous plans from one particular segment are fed up with the high fees, mismanagement and ongoing scandals. Let’s just say they answer to a higher and more moral power. Could this be the beginning of the end? Let us turn to the book of Exodus:
“Anyone who steals must certainly make restitution, but if they have nothing, they must be sold to pay for their theft.” Exodus 22-3.
@13f Yes
@vr Brian is that you again?
Rumor from people I speak to inside the company has it that those diocesan plans are a pain to administer. PEP/MEP set ups take tons of time and resources and lots of manual work for small revenue. Company doesn't even have the technology to administer these effectively. Plans are not profitable because of extensive work involved. If the firm lost a ton of these plans, it would free people up to focus on the more profitable side of the business.
@qe That’s an interesting thought re: the Vatican, but internal chatter is that Voya is continually picking off our big clients, including Diocese of Rockville Center.
Pope Francis appointment US Cardinal Kevin Farrell late last year to overhaul the retirement system. Now, with Prevost in there, there is added emphasis on Vatican finances with the new Pope Leo. The Church can raise a lot of money by restructuring not only the pension but the 403b and 401k church plans to generate more revenue. It would not surprise me there will be a major push to eliminate these separation cost centers and reform and it will generate $200M a year in revenue for the Vatican on the backs of American Catholics.
Not sure about billions leaving (don't know if there are billions left to leave), but there is one rumor out there with the election of the first America Pope, the Vatican is using that as a way to reengage American Catholics. Vatican finances are in tatters. One way to fix that is to pool all the American church retirement plans in one place and charge rock bottom fees and level a high admin charge and push managed portfolios. No American company could take on this endeavor but when the American Cardinals meet, church finances are top of mind. The scuttle but has it that this arrangement could generate up to $1B per year with $500,000,000 earmarked for the Vatican. The ultimate self dealing arrangement. Will this lead to more layoffs ?
The problem with the funds is that the Firm hasn’t changed the group annuity fund line up for years. They still have those old Scudder/Dou--e Bank DWS funds and haven’t changed line up in moons. In the NaV plans they could save a shjt ton by switching to CITs at least in the 401k plans but are slow to act. Plus, the website lacks basic tools and participant education has fallen behind T Rowe, And Vestwell. Need new website and better fund line up. Tim the tool man taylor says the tools su-k caulk.