Empower has agreed to buy Milliman's retirement administration business for $340 million, in a transaction that would add more than 1.5 million plan participants and roughly $130 billion in assets under administration to its already substantial retirement platform.
The acquisition brings Empower approximately 400 defined benefit plans covering around 790,000 participants and about $80 billion in assets under administration, alongside more than 1,100 defined contribution plans representing roughly 750,000 participants and over $50 billion in client assets.
Empower will also pick up 100 health and welfare administration clients with around 100,000 plan participants. More than 800 Milliman employees are expected to join Empower as part of the transaction.
Empower chief executive Edmund F. Murphy III framed the deal as central to the firm's longer-term ambition of delivering end-to-end financial solutions across the working life of an employee.
"Retirement security today requires more than savings alone. It depends on wealth accumulation, healthcare preparedness and reliable income throughout retirement," Murphy said. "The addition of Milliman's defined benefit capabilities strengthens our ability to serve the evolving needs of the 20 million investors we support, the 93,000 retirement plan sponsors we serve and the financial advisors who help clients navigate increasingly complex financial decisions. This acquisition represents another important step in Empower's vision of delivering integrated workplace solutions that help people build wealth, protect it and ultimately retire with confidence."
Milliman is retaining its actuarial consulting and healthcare business, and the two companies expect to establish a preferred provider arrangement following close, under which each firm would refer select actuarial and defined benefit administration opportunities to the other.
Dermot Corry, president and CEO of Milliman, said the company had been deliberate in choosing where the business should go next.
"We are proud of the business we have built and the relationships we have established with our clients," Corry said. "As we considered the next chapter for this business, it was important to find a partner with scale, commitment to the future of retirement and benefits administration, and the long-term vision necessary to continue serving our broad range of clients. We chose Empower because of its leadership position in retirement services and its ability to offer an enhanced range of services to our customers while providing excellent career opportunities for our employees. This transaction allows Milliman to sharpen our focus on our consulting, data analytics and AI businesses."
Defined benefit plans have held their ground as an employer tool, with demand remaining particularly robust among government entities, professional services firms, healthcare organizations and closely held businesses. Cash balance plan designs have also seen meaningful growth as employers look to strengthen workforce retention and retirement readiness.
For Empower, the deal continues a pattern of growth through acquisition. Over the past decade the company has absorbed Personal Capital, MassMutual's retirement business, Prudential's full-service retirement operation and Plan Management Corp. It currently administers more than $2 trillion in assets for over 20 million individuals.
The deal is subject to customary regulatory approvals and is expected to close in the second half of 2026.
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