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OneAmerica sells $60 billion retirement plan to New York-based Voya

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OneAmerica sells billion retirement plan to New York-based Voya

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OneAmerica Financial is selling off its $60 billion retirement plan business to New York-based Voya Financial, the two companies announced last week.

Under the deal, Voya will acquire $47 billion in retirement plans, deferred compensation plans and employee stock ownership plans in addition to $15 billion worth of recordkeeping assets from OneAmerica.

The transaction means all of OneAmerica’s Retirement Services recordkeeping associates will transition to Voya on Jan. 1.

A spokesperson for OneAmerica declined to share the number of employees in the retirement plan division. The retirement plan division makes up less than 15% of OneAmerica’s total revenue, said spokesperson Jim Gavin.

Voya also declined to say how many Indianapolis employees would be directly impacted but said Voya operates as a hybrid work environment.

Voya will pay $50 million up front for OneAmerica’s assets with an additional $160 million that could be paid in 2026 contingent on the plan’s performance, meaning the total price of the deal could reach $210 million, according to a Voya presentation.

Indianapolis-based OneAmerica, one of the largest private companies in Indiana, reported having a total of more than 2,500 associates on its staff in 2022. Its 36-floor downtown tower is known for its signature signboard with witty, timely puns.

OneAmerica employs a majority of its workers in Indiana but operates on a hybrid in-office and remote work schedule, giving employees flexible options, Gavin said.

After the transaction, “a vast majority” of OneAmerica’s retirement plan employees will be employed at Voya, said spokesperson Laura Maulucci. OneAmerica declined to answer an IndyStar question on severance packages if employees decide to leave the company before the acquisition.

A publicly traded company, Voya plans to share more details at a Q3 earnings call that has not been scheduled yet. Voya employs about 9,000 workers across its company.

OneAmerica has been a strong force in the Indianapolis financial services industry since its start in 1877 providing death benefits to the Knights of Pythias. The company expanded its physical footprint with the construction of the downtown tower in 1979.

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OneAmerica executives said they trusted Voya to maintain the commitment OneAmerica has made for decades in the retirement business.

“We see this as a great opportunity for our customers and the OneAmerica Financial associates that will continue to grow with Voya, while we will focus on our remaining core product lines where we see tremendous growth potential,” said OneAmerica chairman, president and CEO Scott Davison in a release.

More: 15 things you (probably) didn’t know about OneAmerica

The Voya acquisition will go into effect on Jan. 1, subject to regulatory approvals.

Alysa Guffey is a business reporter covering growth and development for IndyStar. Contact her at amguffey@gannett.com or on X: @AlysaGuffeyNews.

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