Empower, the retirement services giant, has struck a $340 million deal to acquire Milliman's retirement administration business, a transaction that will add roughly $130 billion in assets under administration and more than 1.5 million plan participants to its existing platform. The acquisition, announced Tuesday, underscores Empower's strategy of bulking up through M&A to become a one-stop shop for workplace benefits.
The deal brings approximately 400 defined benefit plans covering about 790,000 participants and $80 billion in assets under administration, along with more than 1,100 defined contribution plans representing roughly 750,000 participants and over $50 billion in client assets. Empower will also absorb 100 health and welfare administration clients with around 100,000 participants. More than 800 Milliman employees are expected to join Empower upon closing.
Empower CEO Edmund F. Murphy III framed the acquisition as central to the firm's long-term vision of providing integrated financial solutions across an employee's working life. "Retirement security today requires more than savings alone. It depends on wealth accumulation, healthcare preparedness and reliable income throughout retirement," Murphy said in a statement. "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."
Milliman will retain its actuarial consulting and healthcare businesses, and the two firms plan to establish a preferred provider arrangement after the deal closes. Under that arrangement, each company 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 a partner. "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," Corry said. "This transaction allows Milliman to sharpen our focus on our consulting, data analytics and AI businesses."
Defined benefit plans have remained a resilient tool for employers, with demand particularly strong among government entities, professional services firms, healthcare organizations and closely held businesses. Cash balance plan designs have also seen meaningful growth as employers seek to improve workforce retention and retirement readiness. For advisors, the deal highlights the growing complexity of retirement planning, where stress-testing plans against Social Security trust fund depletion becomes increasingly important.
Empower's acquisition spree over the past decade includes purchases of Personal Capital, MassMutual's retirement business, Prudential's full-service retirement operation and Plan Management Corp. The company now administers more than $2 trillion in assets for over 20 million individuals. The Milliman deal further cements its position as a dominant player in the retirement space, particularly as IRA assets hit $19.2 trillion, fueled by rollovers from 401(k) plans.
The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions. Financial advisors should note that the deal may shift service dynamics for clients with Milliman-administered plans, as Empower integrates the new book of business into its larger platform.
