The product, which will be offered through intermediaries, is being aimed at:
- professionals seeking to contribute more than $45,000 to their retirement plan,
- owners who are approaching retirement and are seeking ways to maximize contributions,
- professionals group (doctors, CPAs, lawyers),
- family and closely-held businesses.
“We can now provide our clients with defined benefit plans, 401(k) plans or both – depending on the unique needs of that company,” said Ed Eng, Senior Vice President, Product Development, in the news release. “With the passage of the Pension Protection Act of 2006, we see an opportunity to grow this freshly invigorated market.”
The company said early experience suggests increasing interest in cash balance plans from a range of professional dominated organizations and small businesses.
The defined benefit plans will be offered through an unbundled model. Plan design, testing, and actuarial support will be provided by pension consultants or third party administrators (TPAs), the company said.
For more on small defined benefit programs, see What’s Old Is New Again.