Sun Life Financial has agreed to sell its 401(k)plan administration business in the United States to The Hartford Financial Services Group for an undisclosed amount.

The division, Sun Life Retirement Services Inc.(RSI), provides administration services to bundled and unbundled defined contribution plans, serving approximately 6,000 retirement plan sponsors and 465,000 retirement plan participants in the U.S.

“After a thorough review, we determined that the best course of action is to focus on parts of the U.S. retirement and wealth market where we have or can achieve competitive advantage, scale, and a market leadership position,” said Bob Salipante, President, Sun Life Financial U.S.

Sun Life Financial’s wealth strategy includes its significant presence in asset management through its subsidiary Massachusetts Financial Services Company(MFS). MFS has strong distribution relationships with both RSI and The Hartford which will continue when the RSI business moves to The Hartford.

To comment on this story, email craig.sebastiano@rci.rogers.com.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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