Empower to acquire Milliman's retirement administration arm for USD 340 million to bolster defined benefit capabilities

Empower has agreed to purchase the retirement administration division of Milliman for USD 340 million, absorbing over 800 employees and approximately USD 130 billion in combined client assets. The acquisition enables Empower to enhance its workplace financial solutions while allowing Milliman to focus on its core actuarial and data analytics consulting services.

In a joint corporate announcement, financial services provider Empower confirmed an agreement to purchase the retirement administration operations of Milliman for a total consideration of USD 340 million. Empower operates as a major provider of retirement tracking and workplace financial solutions, whereas Milliman is an international actuarial and risk management consulting firm. The transaction, slated to close in the second half of 2026 pending regulatory clearances, transitions approximately 800 Milliman personnel to Empower. Furthermore, Empower will absorb roughly USD 130 billion in client assets spanning more than 1,500 defined benefit and defined contribution plans.

This acquisition marks a substantial consolidation in the pension and workplace benefits sector. By acquiring specialized infrastructure for defined benefit plans, Empower broadens its capacity to deliver comprehensive, single-platform financial management that covers retirement savings, equity compensation, and healthcare accounts. Concurrently, Milliman is divesting these administrative functions to concentrate exclusively on its primary actuarial consulting, data analytics, and artificial intelligence ventures.

The restructuring directly impacts the North American wealth management and corporate human resources industries. With a growing demand from governmental bodies and professional firms for modernized retirement structures like cash balance plans, large-scale financial administrators are increasingly seeking to offer integrated financial wellness ecosystems. Following the integration, the two firms will establish a preferred provider relationship, ensuring continuous actuarial and administrative support for joint clients.

For institutional investors and plan sponsors, this transaction highlights an ongoing shift toward scalable, end-to-end retirement infrastructure. Major plan administrators are actively leveraging acquisitions to reduce operational redundancies and capture higher market shares. Corporate employers seeking sophisticated workforce planning tools will likely benefit from the centralized administrative efficiencies generated by this strategic alignment.