NU Online News Service, Aug. 8, 5:50 p.m. – Prudential Financial Inc., Newark, N.J., says it will be getting out of the business of keeping records for most defined-contribution retirement plans with less than $3 million in assets.
Prudential has been using an office in Woodbridge, N.J., to keep records for its Third-Party Administrator Alliance plans.
The same office has also been keeping records for Prudential’s other 403(b) plans, SEP plans, Group IRAs, SIMPLE plans and SARSEP plans.
But Prudential began using the BISYS Group Inc., New York, a financial-services administration company, to keep records for many of its small retirement plans several years ago, and it now has decided to transfer recordkeeping for all TPA Alliance plans to BISYS.
Prudential says it will let the other small retirement plans pick their own administrators.
Prudential hopes to complete the transitions by the end of the year.
The company has not yet given details about the effects of the shift on the Woodbridge, N.J., office and its employees, but it says it will be eliminating a “redundant recordkeeping system.”