Truist Financial To Sell Institutional Retirement Business

(RTTNews) - Truist Financial Corp. (TFC) said it has sold its institutional 401(k) investment advisory services business to OneDigital Investment Advisors. The company also said it agreed to sell its institutional 401(k) recordkeeping businesses to Ascensus and Empower Retirement. The terms of the transactions were not disclosed.

The OneDigital transaction closed December 31, 2020; the Ascensus and Empower transactions are scheduled to close in the first quarter of 2021.

As per the terms of the OneDigital deal, investment advisory services for approximately 1,200 plans, representing $10 billion in plan assets, will now be delivered by OneDigital.

Ascensus will acquire the heritage BB&T 401(k) recordkeeping business which includes more than 1,200 retirement plans. It consists of about 125,000 plan participants and $5 billion in assets.

Empower will acquire the heritage SunTrust 401(k) recordkeeping business which includes approximately 300 retirement plans. It consists of approximately 73,000 plan participants and $5 billion in plan assets.