Empower and Milliman announced that they have entered into a definitive agreement for Empower to acquire Milliman’s retirement administration business. The transaction is valued at $340 million. Milliman will retain its retirement and healthcare actuarial consulting business.
The companies also expect to enter into a strategic partnership following the close of the transaction.
The acquisition will expand Empower’s capabilities in the defined benefit marketplace and support its strategy of delivering integrated workplace benefits solutions.
The transaction will add specialized defined benefit administration expertise and capabilities to Empower’s retirement, wealth management, stock plan, and consumer-directed healthcare offerings.
Empower said the combination will create a more comprehensive suite of workplace financial solutions for employers, plan sponsors, advisors, and individual investors.
More than 800 employees are expected to join Empower as part of the transaction.
At closing, Empower expects to acquire approximately 400 defined benefit plans representing about 790,000 plan participants and approximately $80 billion in assets under administration.
Empower also expects to acquire more than 1,100 defined contribution plans representing approximately 750,000 participants and more than $50 billion in client assets.
The transaction also includes 100 health and welfare administration clients with approximately 100,000 plan participants.
Following the closing, Milliman and Empower expect to establish a strategic relationship for actuarial services and defined benefit plan administration.
Under the expected arrangement, the companies would become preferred service providers in select actuarial services and defined benefit administrative opportunities generated by each firm’s business activities.
Empower said defined benefit plans remain important in the U.S. retirement system, helping employers attract and retain talent while supporting retirement readiness and income security.
The company noted that demand remains strong among governmental employers, professional services firms, healthcare organizations, and closely held businesses.
Empower said the acquisition reflects its continued investment in building a workplace solutions ecosystem connecting retirement savings, retirement income, equity compensation, healthcare savings, and wealth management.
The transaction is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions.
Until the transaction closes, Empower and Milliman’s administration business will continue operating independently.
Eversheds Sutherland is serving as legal counsel to Empower.
K&L Gates is serving as legal counsel and Chesky Partners is serving as exclusive financial advisor to Milliman.
Empower administers more than $2 trillion in assets for over 20 million individuals through workplace and individual retirement plans, advice, financial planning, and investments.
Milliman is an independent firm founded in 1947 that provides solutions across insurance, financial services, healthcare, life sciences, and employee benefits.
KEY QUOTES:
“Retirement security today requires more than savings alone. It depends on wealth accumulation, healthcare preparedness and reliable income throughout retirement. The addition of Milliman’s defined benefit capabilities strengthens our ability to serve the evolving needs of the 20 million investors we support, the 93,000 retirement plan sponsors we serve and the financial advisors who help clients navigate increasingly complex financial decisions. This acquisition represents another important step in Empower’s vision of delivering integrated workplace solutions that help people build wealth, protect it and ultimately retire with confidence.”
Edmund F. Murphy III, President and CEO of Empower
“We are proud of the business we have built and the relationships we have established with our clients. As we considered the next chapter for this business, it was important to find a partner with scale, commitment to the future of retirement and benefits administration, and the long-term vision necessary to continue serving our broad range of clients. We chose Empower because of its leadership position in retirement services and its ability to offer an enhanced range of services to our customers while providing excellent career opportunities for our employees. This transaction allows Milliman to sharpen our focus on our consulting, data analytics and AI businesses.”
Dermot Corry, President and CEO of Milliman
