ICMA-RC to Offer New Retirement Income Product

 ICMA-RC has announced a new retirement income solution for state and local government employees.

The organization is entering into agreement with Prudential Retirement to make available the VantageTrust Retirement IncomeAdvantage Fund. The fund features no withdrawal penalties, full access to its market value, and a straightforward fee structure, and is expected to be available in the fall of 2010. 

The IncomeAdvantage Fund will be managed by ICMA-RC and made available to participants through their employer-sponsored retirement plans, according to a press release.   

The VantageTrust Retirement IncomeAdvantage Fund is a solution intended to provide guaranteed lifetime retirement income to public sector employees, the announcement said. The fund invests in a separate account under a group variable annuity issued by Prudential Retirement Insurance and Annuity Company and is designed primarily for participants who are within 10 to 15 years of retirement.  

Participants will have the option to “lock-in” their benefits and begin receiving a guaranteed lifetime annual withdrawal amount from the fund at any time after their 55th birthday. After a participant “locks-in,” the guaranteed lifetime annual withdrawal amount will never decrease as a result of market downturns, but the amount can increase if the markets perform well.