WESTWOOD, Mass., Sept. 5, 2013 /PRNewswire/ -- New York Life Retirement Plan Services, a leading provider of retirement plans to U.S. corporations and unions, announced today that it has surpassed $2 billion in Guaranteed Interest Account (GIA) assets, a pooled stable value option for defined contribution plans supported by the financial strength of New York Life, its $185 billion general account and the experts who manage it.
New York Life introduced its GIA on the company's bundled recordkeeping platform in July of 2009, and as an investment on third-party recordkeeping platforms in July of 2011. GIA is available on 13 defined contribution retirement platforms and is available for 401(k), 403(b), 401(a) and 457 retirement plans.
"The remarkable growth we have achieved with GIA reflects the growing demand for stable value options backed by a company with the highest possible ratings for financial strength and a demonstrated track record of investment management expertise," said Patrick Murphy, managing director of distribution for New York Life Retirement Plan Services. "Those factors, plus a competitive rate, make New York Life GIA products especially attractive for the open architecture environment that exists in the defined contribution market."
To capitalize on these strong market conditions, New York Life Retirement Plan Services recently expanded its stable value sales team to include Kevin Mansfield as the new director of stable value distribution. Mansfield joined New York Life on July 15 and reports to Patrick Murphy. Previously, he served as managing sales director for stable value and DCIO markets at Metlife, Inc. Reporting to Mansfield will be Debbie Vince, stable value sales director for the western region, Glenn Macdonald, stable value sales director for the eastern region, and Joe Simmons, who was recently appointed as stable value sales director for the mid-west region.
Stable value has remained an important asset class for plan participants, with more than one of every 10 dollars on New York Life's recordkeeping platform allocated to a stable value option. Stable value allocation increases dramatically as participants age, with baby boomers allocating nearly 20% of new contributions to stable value. Aruna Hobbs, managing director of stable value investments at New York Life Investment Management, expects continued strong demand for stable value investments.
"Stable value affords participants a principal protection option that is highly attractive in today's volatile capital markets, especially for baby boomers approaching retirement and seeking a more conservative allocation," said Hobbs. "It is notable that more than one in 10 dollars is going into stable value assets in today's automated environment despite the fact that stable value is not a qualified default investment alternative. That means participants are self-selecting stable value as an investment, a trend we expect to continue as the population ages."
New York Life Insurance Company is a leader in the stable value industry with more than 30 years of experience and $22 billion in assets.New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody's Investors Service (Aaa), Standard & Poor's (AA+).*
About New York Life Retirement Plan Services
New York Life Retirement Plan Services offers bundled retirement plan solutions and defined contribution investment-only products throughout the United States. New York Life Retirement Plan Services, a division of New York Life Investments, administers more than $47.2 billion in bundled retirement plans as of June 30, 2013. New York Life Investments is a subsidiary of New York Life Insurance Company. With offices in Westwood, Massachusetts, Parsippany, New Jersey, and San Francisco, New York Life Retirement Plan Services is widely recognized for its leadership within the retirement plan industry.
* Source: Individual Third Party Ratings Reports as of 8/1/13
SOURCE New York Life Retirement Plan Services