Plan Fiduciaries Compare Annuities in Subscription-Based ‘Hub’

The 401(k) Annuity Hub, a subscription service intended to help retirement plan fiduciaries select the best annuity for their participants, officially launched on Tuesday.

The independent service allows advisers and plan sponsors to access a database of annuities while enabling them to compare the offerings based on specific features, such as whether the annuity is offered inside or outside of the plan. The 401(k) Annuity Hub features 32 annuities tailored to meet various retirement needs, according to Tamiko Toland, founder of the service.

The program categorizes offerings based on their practical applications, rather than traditional classifications, allowing for flexibility in how products can be utilized, according to Toland. The categories include whether the annuity can be offered as a qualified default investment alternative, as a stand-alone product or as part of a managed solution.

For instance, Allianz’s Fixed Indexed Annuity can serve both as a stand-alone annuity and as part of a target-date or managed account solution, placing it in multiple categories.

Additionally, while TIAA’s Structured Income Annuity is classified as an annuity, it is only available within a managed account context.

The service also encompasses unique offerings, such as SSgA’s IncomeWise, which enables participants to select a qualified longevity annuity contract, according to Toland. All solutions in the 401(k) Annuity Hub are intended to provide guaranteed lifetime income, she says.

As part of the offering, 401(k) Annuity Hub’s public website has a free educational resource to serve as a guide for plan sponsors and advisers on understanding how annuities work in 401(k) plans.