What is the Pentegra story?

Established in 1943 by the Federal Home Loan Bank System to manage a retirement benefits program for their employees, today Pentegra Retirement Services is the premier retirement provider for the financial community. 

Formed as a not-for-profit cooperative organization, Pentegra began as a unique and innovative multiple-employer defined benefit plan—The Pentegra Defined Benefit Plan for Financial Institutions—a multiple employer defined benefit pension plan with the added benefit of transferring the principal fiduciary role to Pentegra—a unique offering in the retirement plan market. The program was soon made available to all federally-insured financial institutions.

In 1970 at the request of its clients, Pentegra created a defined contribution plan—The Pentegra Defined Contribution Plan for Financial Institutions—structured using the same multiple-employer approach that placed the principal fiduciary responsibility with Pentegra. 

Pentegra successfully grew its business by offering its multiple-employer plans to community-based financial institutions nationwide, by focusing on exceptional service and continual product enhancements in response to client needs. 

As many community banks began the transition from mutual companies to stock companies, they needed ways to incorporate bank stock into their retirement benefits programs—a service that is not readily available for stock that is thinly traded and/or closely held.  As members of the Pentegra Defined Contribution Plan for Financial Institutions, individual bank stock could not be added under the multiple-employer structure.  Pentegra was challenged to find an innovative solution for its clients that allowed for individual stock ownership under a qualified retirement plan.  

The solution was a new corporate entity that would offer retirement plans that mirrored many of the features and benefits of the Pentegra multiple-employer plans, but were structured as single-employer plans.  Under the single-employer plan structure, financial institutions could offer their stock as an investment option within their DB or their DC plan, or as a stand alone ESOP or KSOP. This new for-profit corporation became Pentegra Services, Inc (PSI).  It was incorporated in 1993 and today represents the fastest growing area within Pentegra Retirement Services.  Most recently, Pentegra expanded its product offering with new wholesale programs, the Pentegra Private Laabel 401(k) program, a full service 401(k) program for financial institutions to market to their commercial clients, and the Pentegra Outsourcing Advantage, a private label outsourcing solution for bank trust departments.

As the premiere retirement plan provider to the financial community, Pentegra has adapted and evolved over the years to meet the changing needs of its customers.  Today, that evolution is reflected in our comprehensive menu of products and services.  In addition to 401(k) and defined benefit pension programs, we also offer ESOPs, Profit Sharing and Money Purchase Plans, Cash Balance Plans and Executive Benefit and Director Programs.

At Pentegra Retirement Services, we understand the demanding retirement plan requirements of financial institutions and design retirement plans that meet them. We presently manage more than 800 retirement programs and over $4 billion in assets for over 90,000 employees nationwide.  Pentegra is currently endorsed by the Independent Community Bankers of America (ICBA), America’s Community Bankers (ACB), and affiliated with and/or endorsed by over 40 state banking associations nationwide. Pentegra is also a Preferred Partner of NAFCU Services.