Ohio Taft-Hartley Plan Taps MassMutual

11-25-2009 | Source: Fund Action

Ironworkers District Council of Southern Ohio & Vicinity Annuity Trust tapped MassMutual Retirement Services as the new bundled provider for its $243 million defined contribution Taft-Hartley plan, replacing the incumbent, Putnam Investments. Putnam earlier this year stepped out of the client services role for the organization after entering an agreement with Mercer in June for Mercer to assume responsibility for all plan-related services for existing Taft-Hartley clients, previously serviced jointly by the two companies.

Ken Pouch, national practice leader for MassMutual’s Taft-Hartley business development team, confirmed the firm took over this month. Pouch explained that the Ironworkers District Council has a member directed annuity plan, a defined contribution option in which employees receive a collectively bargained amount of retirement savings per hours worked.

The Ironworkers District Council of Southern Ohio & Vicinity Annuity Trust had been with Putnam since 1997 and was loyal to the firm, said Jim Bosworth, co-chairman. But when Putnam went through some changes this year it seemed like a good time to put the plan out for bid, Bosworth said. He noted that Diversified Investment Advisors and New York Life were brought in as finalists, but that MassMutual stood out for its education program, with a retirement education specialist assigned directly to the union. An official from New York life declined to comment and calls to Diversified were not returned.

Bosworth said Putnam’s products were underperforming, and wouldn’t go with open architecture on the investment platform. “MassMutual offered total open architecture and the new funds we choose are overperforming,” he said. A spokeswoman from Putnam told FA that the firm decided in June to entirely focus on investment management for Taft-Hartley plans, with Mercer assuming responsibilities for the relationship management, participant communication, and recordkeeper services for the plan.

The Ironworkers District Council of Southern Ohio, based in Dayton, Ohio, represents 11 local unions from Ohio, Indiana, Kentucky, and West Virginia with approximately 8,200 participants. Segal Advisors is the plan consultant.