Data & Research May 21, 2015

Sponsors, Participants Warming Up to Guaranteed Income Options

LIMRA Secure Retirement Institute calculated that 3 million participants have access to an in-plan income guarantee through their employee-sponsored retirement plan in 2014, a 32% increase from 2013.
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In addition, there was a 24% rise in the number of participants electing an in-plan guarantee, to reach 71,300 in 2014. In 2014, the number of retirement plans offering in-plan guarantees grew by 41%, totaling 33,500, and more than 132 billion in assets are in plans that offer an in-plan guarantee, up 27% compared with 2013.

The study found small plans (with less than $10 million in assets) are most likely to offer in-plan guarantees. In 2014, 31,000 small plans, 1,900 mid-size plans ($10 to 199 million in assets), and 80 large/mega plans ($200 million and more) offered in-plan guarantees to their workers. Smaller plans are more likely to offer in-plan income guarantees because the early in-plan guarantee products were developed by life insurers, which tend to be in the small and mid-size markets, LIMRA says. 

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Total assets covered by an in-plan guarantee reached $3.6 billion, a 26% increase over last year. The average amount covered per participant is $50,000.

Prior LIMRA Secure Retirement Institute research reveals that consumers are most concerned about having enough money to last throughout their retirement. Eight out of 10 U.S. workers believe employers should provide ways to convert savings into retirement income. Younger workers are particularly interested in this option, with 90% of workers ages 18 to 34 saying they somewhat or strongly agree that employers should provide avenues to convert savings into income at retirement.

A guaranteed lifetime withdrawal benefit (GLWB) and deferred income annuities (DIA) are the two types of in-plan guarantees currently sold in retirement plans, according to LIMRA. These products allow participants in retirement plans to protect some of their savings to provide future retirement income while they are still working and contributing to their plans.

Deals & People May 21, 2015

NY Life Names Investment Management Head

Yie-Hsin Hung has been named chief executive of New York Life Investment Management after serving as co-president of the division.
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Hung, who has nearly 30 years of experience, joined New York Life in 2010 to run the institutional investments business and was promoted in 2014 to co-president of the investment management group.  Previously, she was at Bridgewater Associates. She held numerous positions at Morgan Stanley Investment Management, including managing director, global head of strategic acquisitions and alliances, chief administrative officer and head of the firm’s private equity and absolute return businesses. Her time with Morgan Stanley began in the investment banking division, with a primary focus on real estate.

Hung reports to Chris Blunt, president of the Investments Group, which includes all of New York Life’s asset management businesses. The firm reports it has more than $500 billion in assets under management.

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Hung holds a bachelor’s of science from Northwestern University and a master’s in business administration from Harvard Business School.

Hung takes over from Drew Lawton, who is now a special adviser to Blunt and will retire at the end of the year. Stephen Fisher, formerly co-president of New York Life Investment Management, is now president of NYLIM and reports to Hung. He continues as president of the MainStay Funds.

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