BNY and Conduent to Deliver End-to-End Pension Risk Transfer Solution to Support Increasing Transactions among Corporate Pensions

Rhea-AI Summary

Conduent (NASDAQ: CNDT) and BNY (NYSE: BK) have announced a strategic alliance to provide comprehensive pension risk transfer services. The collaboration combines BNY's global payments and cash management capabilities with Conduent's expertise in pension account record-keeping and customer service.

The partnership aims to offer insurers and pension acquirers an end-to-end pension risk transfer solution operating in a single, comprehensive system. This integration helps companies with defined benefit programs address challenges related to high maintenance costs and risk management while ensuring continued support for plan participants.

Positive

• Strategic alliance with major financial institution BNY expands market reach
• New integrated solution creates additional revenue stream in pension risk transfer market
• Leverages Conduent's 40+ years of experience in pension administration services

Negative

• None.

Insights

Financial Services Analyst

This strategic partnership between BNY Mellon and Conduent represents a significant development in the pension risk transfer (PRT) market. The collaboration addresses a growing need as more companies seek to offload pension liabilities from their balance sheets. By combining BNY's payment infrastructure with Conduent's administration expertise, the solution streamlines what has traditionally been a complex and fragmented process. For Conduent, this alliance opens up new revenue opportunities in the expanding PRT market, which has seen record transaction volumes in recent years. The partnership leverages Conduent's established pension administration capabilities and could help secure its position in this growing market segment. However, while promising, the actual revenue impact will depend on market adoption and transaction volumes, making immediate financial benefits uncertain.

Market Research Analyst

The pension risk transfer market presents substantial growth potential, driven by companies seeking to reduce their pension obligations amid rising costs and regulatory complexities. This solution addresses key pain points in the PRT process by offering a unified platform for transactions that typically involve multiple vendors and systems. The timing is strategic, as the PRT market has been experiencing significant growth, with many companies looking to de-risk their balance sheets. For Conduent, partnering with a prestigious institution like BNY Mellon enhances their market positioning and could help capture a larger share of this expanding market. The collaboration also demonstrates Conduent's ability to leverage its core competencies in benefit administration to create new business opportunities.

As pensions become increasingly costly and difficult to manage, companies can de-risk their balance sheets by transferring pensions to insurers and pension acquirers

New collaboration enables seamless pension experience from administration to payments

NEW YORK & FLORHAM PARK, N.J.--(BUSINESS WIRE)-- The Bank of New York Mellon Corporation (“BNY”) (NYSE: BK), a global financial services company, and Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, have today announced a strategic alliance to connect insurers and pension acquirers with end-to-end pension risk transfer services in one place.

The new strategic alliance combines BNY’s leading global payments and cash management capabilities with Conduent’s expertise in maintaining the records for pension accounts, managing transaction data and ability to provide customer service for pension members. The collaboration provides insurers and pension acquirers access to an end-to-end pension risk transfer solution that operates in a single, comprehensive system.

“In an increasingly complex pension transfer risk market, we see that clients are on the constant lookout for solutions that can simplify and de-risk these programs,” said Carl Slabicki, Executive Platform Owner, Treasury Services at BNY. “By drawing on BNY’s platform infrastructure for payments and cash management services, and Conduent’s integrated administration expertise, we are able to deliver a unified, end-to-end package that supports clients through every stage of the pension risk transfer lifecycle.”

“Companies with defined benefit programs face high maintenance costs, risk and challenges in managing those plans,” said John Larson, Vice President of Total Benefits at Conduent. “The collaboration with BNY offers both the insurance market and defined benefit plan sponsors a seamless solution underpinned by Conduent’s more than 40 years of experience in providing administration services for complex defined benefit programs. Companies and their insurers or pension acquirers can reduce liabilities, risks and administration costs while Conduent and BNY provide stellar support to plan participants.”

To learn more, please visit the BNY website here and Conduent website here.

About BNY

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of September 30, 2024, BNY oversees $52.1 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY employs over 50,000 people globally and has been named among Fortune’s World’s Most Admired Companies and Fast Company’s Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.

About Conduent

Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 55,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com.

Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Important Information

This press release is qualified for informational purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY to members of the financial press and media and the information contained herein should not be construed as investment advice.

Trademarks

Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205185509/en/

Media:

Conduent

Lisa Patterson

lisa.patterson@conduent.com

BNY

Saurav Karia

saurav.karia@bny.com

Source: Conduent Incorporated

FAQ

What is the purpose of Conduent's (CNDT) partnership with BNY?

The partnership aims to provide end-to-end pension risk transfer services, combining BNY's payments and cash management capabilities with Conduent's pension administration expertise in a single comprehensive system.

What services will Conduent (CNDT) provide in the pension risk transfer solution?

Conduent will provide pension account record-keeping, transaction data management, and customer service for pension members as part of the integrated solution.

How will the Conduent (CNDT) and BNY alliance benefit companies with pension plans?

The alliance will help companies reduce liabilities, risks, and administration costs associated with defined benefit programs while ensuring continued support for plan participants.