Wachovia has bought the defined contribution pension plan record-keeping business of Minneapolis-based Ameriprise Financial, Inc. The transaction will add significant scale to Wachovia Retirement Services -the combined company will now provide recordkeeping services to more than 2 million participants and pensioners and over $100 billion in assets. The transaction is expected to close late in the second quarter of 2006.
Ameriprise provides recordkeeping services to 225 retirement plans with nearly 700,000 participants and approximately $28 billion in assets. “This transaction underscores Wachovia’s commitment to the retirement business,” says Bob Reid, president of Wachovia’s Retirement and Investment Products Group. “Retirement is a key focus for our company, and we look forward to continuing to provide great service and support to Ameriprise’s defined contribution recordkeeping clients.”
Ameriprise’s defined contribution recordkeeping business will become part of Wachovia Retirement Services, which will continue to be managed by Joe Ready, Senior Vice President. Terms of the transaction were not disclosed.
“We are excited about the addition of Ameriprise’s defined contribution plans as we continue to expand our retirement plan business,” says Ready. “The combined organization will be a major force in the retirement plan business. This is a great fit for both organizations.”
Ready added that Wachovia is committed to providing continuity to Ameriprise’s defined contribution clients. “Ameriprise already leverages Wachovia’s recordkeeping platform, and we share a strong commitment to client service,” he says.”We are committed to providing a smooth transition and enhanced services for clients.”
Over the past three years, Wachovia Retirement Services has integrated Bank of New York’s defined contribution daily recordkeeping business and PFPC’s retirement services business.