J.P. Morgan Signs Agreement to Sell J.P. Morgan Retirement Plan Services to Great-West Financial

J.P. Morgan Asset Management announced it has signed an agreement to sell its Kansas City-based 401(k) recordkeeping business, J.P. Morgan Retirement Plan Services (RPS), to Great-West Financial.

According to a release, the transaction, which will not have a material impact on JPMorgan Chase's earnings, is expected to close during the third quarter of 2014, subject to the receipt of regulatory approvals. Terms of the transaction were not disclosed.

"We believe that this deal is very complementary. Great-West Financial is one of the largest and most respected retirement plan administration firms in the industry - with an existing expertise in serving large plans - and we believe that our clients and employees will benefit from the acquisition," said Michael Falcon, Head of Retirement at J.P. Morgan Asset Management. "Clients of RPS will experience continuity in the people, products and services they are accustomed to, while gaining the technological excellence and deep product capabilities offered by Great-West Financial, an established provider to public and private plans."

The transaction includes the large- to mega-sized plans, and does not include J.P. Morgan's business in the small plan space administered through Retirement Link, which is a distinct and separate offering. J.P. Morgan will continue to offer and even expand its efforts to serve the growing market in the small plan space.

J.P. Morgan and Great-West Financial noted they are committed to providing the same service and support that clients expect with no disruption as a result of the acquisition. Employees of RPS will become Great-West Financial employees upon close. The office location in Overland Park, KS, will be retained by Great-West Financial.

With $109 billion in defined contribution assets under management and $1.6 trillion in total AUM, J.P Morgan Asset Management is a provider of investments, retirement plan services and thought leadership serving companies, advisors and individuals globally.

"We continue to rapidly grow through all areas of the retirement marketplace by delivering investments, including our growing SmartRetirement target date funds, a distinct small-market defined contribution plan offering, and innovative insights and tools including the award-winning Guide to Retirement," said Falcon. "Our mission is to be our clients' premier partner in helping individuals achieve a financially sound retirement."

Robert L. Reynolds, who was recently named President and Chief Executive Officer of Great-West Lifeco U.S., the holding company that owns Great-West Financial and Putnam Investments said, "With today's announcement, we are taking a powerful step toward addressing the complex and evolving needs of millions of working Americans - through the combination of expertise, talent and business scale being created at Great-West Financial."

J.P. Morgan Asset Management is a retirement solutions provider.

Great-West Financial is an underwriter of life insurance.

More Information:

www.jpmorganchase.com

((Comments on this story may be sent to [email protected]))