IncomeWise Target Date Strategies to Become Available on Voya Platform; ABA Retirement Funds Program to Become First Adopter on the Platform

Business Wire 5-Mar-2025 1:00 PM

Solution Demonstrates a Shared Continued Commitment to Helping Improve Participant Outcomes

State Street Global Advisors, the asset management business of State Street Corporation (NYSE:STT), today announced that its IncomeWise™ Target Retirement Strategies will be made available on the Voya Financial recordkeeping platform, marking a major milestone in the expansion of the solution's availability across the industry. This achievement aligns with State Street Global Advisors' commitment to providing participants with innovative and flexible retirement solutions.

The ABA Retirement Funds Program (the "ABA Program") will be the first adopter on the Voya Financial recordkeeping platform. Mercer Trust Company LLC serves as the investment fiduciary for the ABA Program.

"Working together with Voya is a significant step in making IncomeWise accessible to a broader audience of retirement savers, including plan sponsors and participants within the ABA Program," said Brendan Curran, Head of US Retirement at State Street Global Advisors. "Americans face increasing complexity in retirement planning, and IncomeWise offers a flexible approach to help participants build confidence in their financial futures."

IncomeWise blends the simplicity of traditional index-based target-date funds with the option for participants to activate income across part or all of their target-date fund balance. Through a simple two-step election process, participants can choose to activate two integrated income features: deferred annuity payments for lifelong security and automatic monthly withdrawals that provide a structured spend-down option. This combination offers both flexibility and longevity protection, helping participants create a retirement income strategy that aligns with their needs.

"We welcome the opportunity to support the ABA Program in providing its plan sponsors and participants with a growing set of tools to help improve future retirement outcomes," said Ginger Brennan, head of ABA Retirement Funds Program and Multiple Employer Solutions at Voya Financial. "This is the next step in expanding the ABA Program's Retiree Menu, which provides participants nearing or in retirement with custom investment options and education, by now providing solutions for those individuals wanting the assurances that come with guaranteed income."

Voya also intends to make IncomeWise available to additional eligible clients in the future, making Voya the second recordkeeper making IncomeWise available, after Fidelity Investments. IncomeWise and related custom target-date strategies now have more than $20 billion in committed assets.

Established more than 60 years ago by the American Bar Association, the ABA Retirement Funds Program sponsors a full-service retirement solution for legal community organizations. The adoption of IncomeWise further reflects the ABA Program's focus on participant outcomes and retirement plan innovation.

About State Street Global Advisors

For over four decades, State Street Global Advisors has served the world's governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, and as pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world's fourth-largest asset manager* with $4.73 trillion^† under our care.

*Pensions & Investments Research Center, as of 12/31/23.

^†This figure is presented as of December 31, 2024 and includes ETF AUM of $1,577.74 billion USD of which approximately $82.19 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

About Voya Financial

Voya Financial, Inc. (NYSE:VOYA) is a leading health, wealth and investment company with approximately 10,000 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 approximately 15.7 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 approximately 11.9 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.

This material is for educational purposes only; no investment, financial or tax advice or recommendation is provided. It does not suggest taking or refraining from any course of action and should not be used as basis for making any investment decision. It is not designed to be a recommendation of any specific insurance or investment product or strategy and it should not be considered a solicitation to buy or an offer to sell any security or insurance product.

The information in this material solely illustrates some aspects of IncomeWise. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Plan participants should consult their tax and financial advisor(s) prior to making a decision to invest in IncomeWise or elect or not Deferred Guaranteed Income or Immediate Income. Neither State Street Global Advisors ("SSGA") nor its affiliates or representatives engages or has engaged in the delivery of investment advice to plan participants.

SSGA does not make any recommendation about whether IncomeWise is suitable for any individual plan participant. The election to participate or not in IncomeWise is made by each individual participant. SSGA does not provide financial or investment or tax advice or recommendations, or otherwise act as a fiduciary, to plan participants in connection with this determination or this election.

IncomeWise is not intended to be a complete investment program, but rather intends to supplement a plan participant's retirement savings strategy. Participants should consult their own advisers regarding the role of the IncomeWise features in their overall retirement savings approach. There is no guarantee that IncomeWise will satisfy a participant's retirement goals or needs. IncomeWise does not protect against the risk that participants deplete or outlive their retirement savings.

Investing involves risks including the risk of loss of principal. An investment in the funds is not insured by the FDIC or by any other governmental agency, and it is not an obligation or deposit of or guaranteed by SSGA or any of SSGA's affiliates, including State Street Bank and Trust Company, or any other bank.

IncomeWise Retirement Income is comprised of two features available for eligible participants to elect: Deferred Guaranteed Income and Immediate Income. Deferred Guaranteed Income (QLAC) and Immediate Income are subject to eligibility requirements, conditions and limitations.

Deferred Guaranteed Income is an option available only to eligible plan participants and refers to the purchase of a qualified longevity annuity contract (QLAC), which is an insurance product issued to electing participants by a third-party insurance company that guarantees monthly payments that begin at age 78 for the rest of the plan participant's life, or for the life of the spouse of the plan participant as applicable, whichever is longer. Deferred Guaranteed Income (QLAC) is subject to eligibility requirements, conditions and limitations.

QLAC payments are subject to the claims-paying ability of the issuing insurance company; it is possible that the issuing company may not be able to honor the annuity payouts at any time. The QLAC is provided by a third-party insurance company selected by SSGA annually. SSGA offers no assurances or guarantees of the selected annuity provider's performance. SSGA undertakes no obligation to review or monitor the performance of an insurance provider with respect to a purchased QLAC following the date of purchase.

The QLAC purchase is subject to market availability and the selection of an insurance provider. A participant may rescind the QLAC purchase during the "free-look period" and after this period the QLAC purchase is irrevocable.

Deferred Guaranteed Income/QLAC payments are not insured by the FDIC or by any other governmental agency, and are not an obligation or a deposit of or guaranteed by SSGA or any of SSGA's affiliates, including State Street Bank and Trust Company, or any other bank.

SSGA does not make any recommendation about whether the QLAC feature is suitable for any individual plan participant. The election to purchase or not Deferred Guaranteed Income is made by each individual participant. SSGA does not provide financial or investment or tax advice or recommendations, or otherwise act as a fiduciary, to plan participants in connection with these determination or these elections. Plan participants should consult their tax and financial advisor(s) with respect to Deferred Guaranteed Income.

Immediate Income is an option available only to eligible plan participants who elect Deferred Guaranteed Income. Immediate Income is subject to eligibility requirements, conditions and limitations.

Immediate Income refers to automatic monthly drawdowns from a plan participant's eligible IncomeWise balance that the participant may elect to receive via IncomeWise. Immediate Income distributions are not guaranteed and are subject to the continuing sufficiency of the plan participant's eligible assets invested in IncomeWise. Immediate Income distributions may fluctuate year-over-year, may not last until and will likely materially decrease at age 78, and may not continue thereafter.

Immediate Income distributions are not insured by the FDIC or by any other governmental agency, and are not an obligation or a deposit of or guaranteed by SSGA or any of SSGA's affiliates, including State Street Bank and Trust Company, or any other bank.

A participant's Immediate Income distribution amount is calculated by a third party based on SSGA's cohort drawdown rates and the participant's eligible plan assets invested in IncomeWise. The distribution amount is adjusted annually and when turning 78, and will not adjust to account for the start of QLAC annuity payments earlier than age 78, which could result in savings being depleted faster than intended. Participants may cancel Immediate Income for any reason at any time, including if they do not wish to receive the adjusted distribution amount. Once cancelled, Immediate Income cannot be reinstated.

SSGA does not make any recommendation about whether the Immediate Income feature or amounts or drawdown rate is/are suitable for any individual plan participant. The election to receive or not Immediate Income is made by each individual participant. SSGA does not provide financial or investment or tax advice or recommendation, or otherwise act as a fiduciary, to plan participants in connection with these determinations or these elections. Plan participants should consult their tax and financial advisor(s) with respect to Immediate Income.

The State Street Target Retirement Funds ("Target Retirement Funds") are designed for investors expecting to retire around the year in each fund's name. When selecting a target date fund or "vintage", participants should consider if they anticipate retiring significantly earlier or later than age 65, even if such participants retire on or near a fund's approximate target date. There may be other considerations relevant to fund selection and participants should select the fund that best meets their individual circumstances and investment goals.

The Target Retirement Funds' asset allocation becomes increasingly conservative as they approach their target date and beyond, and the investment risks of the funds change over time as their asset allocation changes. Once a target date fund reaches its target retirement date, it begins a five-year transition period to the retirement fund. Asset allocation does not guarantee a profit or protect against loss. An investment in the Target Retirement Funds is not insured by the FDIC or by any other governmental agency, and is not an obligation or a deposit of or guaranteed by SSGA or any of SSGA's affiliates, including State Street Bank and Trust Company, or any other bank. Please refer to the disclosure documents for the Target Retirement Funds for further information on these funds and important risk considerations associated with an investment in them.

The Target Retirement Funds are bank-maintained collective investment trust maintained and managed by SSGA. SSGA is a limited purpose trust company established under the laws of the Commonwealth of Massachusetts. The Target Retirement Funds are available to certain eligible defined contribution plans pursuant to the Declaration of Trust of the State Street Global Advisors Trust Company Investment Funds for Tax Exempt Retirement Plans. The Target Retirement Funds are not mutual funds.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.

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www.ssga.com

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All Rights Reserved.

Tracking code: 7704510.1.1.AM.RTL

Expiration date: 02/28/2026

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Michael Kingsley +1 914 522 9471 mkingsley@StateStreet.com