Voya expands nonqualified deferred compensation offering with new ‘Business-ready’ solution for smaller-sized businesses
04 April 2024 - 3:00PM
Business Wire
New solution, designed for small businesses, will build upon
Voya’s prior success in the market as its NQDC plan growth more
than doubled in 2023
Voya Financial, Inc. (NYSE: VOYA), announced today the launch of
“Business-ready” — the latest addition to the firm’s comprehensive
lineup of nonqualified deferred compensation (NQDC) solutions. As a
differentiated market offering, Business-ready provides a more
simplified NQDC offering designed specifically for smaller-size
employers as an added solution for their executive benefits
package.
“At Voya, we continue to see a growing interest in our executive
benefit solutions — so much so that in 2023 we saw a 117% increase
in total plans sold in Voya’s NQDC offerings over the prior year1,”
said Kirk Penland, senior vice president, Nonqualified Markets. “At
the same time, we also know there is not a ‘one size fits all’
solution when it comes to building an executive’s total rewards
package. As smaller employers have unique needs, our new
Business-ready offering provides those employers with an
opportunity to offer a successful NQDC offering, without the
complexities of a tailored solution that many larger companies seek
today.”
Business-ready is available to any size 409A (for-profit)
company but has been designed specifically for smaller-size
employers, including those with less than 400 employees. The new
solution brings forward the expertise and experience of Voya’s
Non-Qualified Markets team, while providing many of the core
benefits of a more customized solution, including several
differentiating features. These include:
- A pre-built investment lineup: Offering 21 unique
asset categories, including equities, fixed income (i.e.
short-/intermediate-term bonds, high yield, global) and
alternatives (such as real estate) managed by Voya Investment
Management. With access to more funds and fund manager support —
including access to different target-dates series — participants
are offered diversification without an overwhelming number of
options.
- Easy implementation and administration: Providing
more-streamlined plan design choices and funding options. This
includes mutual funds and corporate-owned life insurance, as well
as faster implementation and ongoing plan management tailored to
employers on the smaller end of the market.
- Less complexity: With a focus on providing easier plan
management for both employers and their participants,
Business-ready offers the core attributes that make a NQDC plan
effective for participants without the complexities of a larger
custom plan, including flexible contribution and distribution
schedules.
As the holistic wellness needs of Americans continue to evolve,
innovative compensation benefits are becoming an increasingly
important way for employers to attract and reward leadership talent
within an organization. As a result, more employers are looking to
include NQDC, or executive benefit solutions, into their overall
benefit offering; according to industry data, a majority (89%) of
employers today offer NQDC plans to stay competitive with their
benefits packages.2
“Many executives face unique challenges saving for retirement
due to contribution limits of a traditional retirement savings
plan,” added Hunter Penland, vice president, Non-Qualified Markets
sales and service at Voya. “Because a NQDC plan can help address
their needs, these options are becoming increasingly popular across
the industry and even more so among our existing clients at
Voya.”
Voya has been able to further its innovative, nonqualified
compensation executive benefit solution along with its leading
qualified plan administration services through an integrated
experience that helps advance greater financial security for all
participants. Most recently, the firm added Voya Investment
Management’s Pomona Investment Fund, an alternative private equity
product, as a new option to the Voya NQDC investment lineup. In
addition, Voya has launched NQDC distribution portfolios, a
first-of-their-kind investment model, developed with Voya
Investment Management’s Multi-Asset Strategies and Solutions team,
designed for individuals looking to closely align their NQDC
distribution dates with the investments in their plan.
As an industry leader focused on the delivery of benefits,
savings and investment solutions to and through the workplace, Voya
is committed to delivering on its mission to make a secure
financial future possible for all — one person, one family, one
institution at a time.
1. Voya internal data as of Dec. 31, 2023. 2. PlanAdviser,
“Small and Medium Businesses Driving NQDC Plan Growth,” (Dec.
2022).
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth
and investment company with approximately 9,000 employees who are
focused on achieving Voya’s aspirational vision: Clearing your path
to financial confidence and a more fulfilling life. Through
products, solutions and technologies, Voya helps its 15.2 million
individual, workplace and institutional clients become well
planned, well invested and well protected. Benefitfocus, a Voya
company and a leading benefits administration provider, extends the
reach of Voya’s workplace benefits and savings offerings by
engaging directly with over 12 million employees in the U.S.
Certified as a “Great Place to Work” by the Great Place to Work®
Institute, Voya is purpose-driven and committed to conducting
business in a way that is economically, ethically, socially and
environmentally responsible. Voya has earned recognition as: one of
the World’s Most Ethical Companies® by Ethisphere; a member of the
Bloomberg Gender-Equality Index; and a “Best Place to Work for
Disability Inclusion” on the Disability Equality Index. For more
information, visit voya.com. Follow Voya Financial on Facebook,
LinkedIn and Instagram.
VOYA-RET
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version on businesswire.com: https://www.businesswire.com/news/home/20240404161826/en/
Media: Kris Kagel Voya Financial (201) 221-6534
kristopher.kagel@voya.com
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