Mutual of Omaha Offers Mesirow Financial’s Expanded Fiduciary Partnership Program to Retirement Plan Sponsors
OMAHA, Neb., April 27, 2011 – Responding to the changing regulatory environment, Mutual of Omaha will begin offering today a new plan-level fiduciary service option to its retirement plan customers.
Mutual of Omaha will provide Mesirow Financial’s new investment manager service, which has been developed to address plan sponsor needs under section 3(38) of the Employee Retirement Income Security Act of 1974 (ERISA) at the individual plan level. This new offering, if selected by a plan sponsor, gives Mesirow Financial, an ERISA 3(38) Investment Manager, the authority to select and monitor investment options for a plan. This solution expands and complements the existing 3(21) co-fiduciary service Mutual of Omaha has offered in conjunction with Mesirow Financial since 2007.
“Our new 3(38) investment manager solution provides more flexibility to broker-dealers and their advisors, addressing the Department of Labor's proposed regulations expanding the definition of ‘fiduciary’ related to investment advice,” said Tim Bormann, 401(k) product-line director for Mutual of Omaha. “Outsourcing investment selection and monitoring to Mesirow Financial provides an additional layer of protection to broker-dealers and their advisors and allows the advisor to focus on providing other value-added services to their clients. It also reduces the time commitment required by plan sponsors to meet their fiduciary obligations, allowing them to devote more time to running their business.”
The most notable difference between the 3(21) and the 3(38) fiduciary services is that Mesirow Financial, through a menu-driven approach, provides advisors and plan sponsors with multiple investment line-ups to choose from under the 3(21) service; and with the 3(38) investment manager service, Mesirow Financial assumes full responsibility for developing investment guidelines and acts as the investment manager to the plan.
“Mutual of Omaha is consistently in the forefront of offering plan-level fiduciary services that are attractive and efficient to both plan sponsors and advisors,” said Michael Annin, senior managing director of Mesirow Financial’s Investment Strategies department. “We’ve worked with Mutual of Omaha to create a program to assist plan sponsors with their fiduciary obligations. These service offerings are unparalleled, and we are well positioned to provide the new 3(38) investment manager service, as well as the existing 3(21) fiduciary service.”
About Mesirow Financial
Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an independent, employee-owned firm with more than 1,200 employees in locations across the country and in London. With expertise in Investment Management, Global Markets, Insurance Services and Consulting, Mesirow Financial strives to meet the financial needs of institutions, public sector entities, corporations and individuals. The firm is well capitalized and has been consistently profitable, with capital of $299 million, revenues totaling $526 million for fiscal 2010 and $51.0 billion in assets under management, of which $24.3 billion are in currency and commodities as of 12/31/10. For more information about Mesirow Financial, please visit our website at mesirowfinancial.com.
Mutual of Omaha is a full-service, multi-line organization providing insurance, banking and financial products for individuals, businesses and groups throughout the United States.