Products January 31, 2012

PwC Offers Providers Steps to Prepare for Participant-Level Fee Disclosure

Under new Department of Labor rules, retirement plan sponsors must provide fee disclosures to participants by May 31, 2012.
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In light of the complexity and comprehensive nature of the participant-level disclosure requirements, Employee Retirement Income Security Act (ERISA) plan sponsors will be required to take steps well in advance of the first disclosures being delivered to participants, and will need to coordinate closely with their external recordkeepers and investment option providers, PricewaterhouseCoopers (PwC) notes in its latest HRS Insight. PwC said investment providers and recordkeepers will need to be prepared for such directives from plan sponsors.  

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The firm recommends the following actions: 

  • Become familiar with DoL Model Comparative Chart in order to understand and be prepared to deliver the different components of the information that must be disclosed by plan sponsors; 
  • Closely monitor the developments surrounding the participant disclosure regulations and make adjustment to any participant communications as necessary; 
  • Develop tools and resources to help clients deliver the disclosures and address their communication needs; 
  • Establish and provide for access to the required web-related disclosures; 
  • Meet with clients to commence discussion on the availability and retrieval of the investment-related and expense information; 
  • Assist clients with developing a communication program for such information; 
  • Incorporate the enhanced fee disclosure requirements into existing practices with respect to the disclosure of all fees charged to each individual’s plan account; 
  • Assess the business risk associated with disclosure requirements and train internal staff on clients’ compliance requirements with respect to such rules; and 
  • Consider the additional costs that may be incurred to fulfill client requests for information in order to satisfy the applicable disclosure requirements. 

Visit http://www.pwc.com/hrs for more information.

 

Products January 31, 2012

Allianz Life Launches FIA

Allianz Life Insurance Company of North America (Allianz Life) launched the Allianz 365i Annuity and Income Maximizer Rider.
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The Allianz 365i Annuity and Income Maximizer Rideris an FIA with optional rider that is exclusive to Field Marketing Organizations and agents associated with the Allianz Preferred distribution model.

Available in 32 states, the newest FIA to Allianz Life’s lineup offers guarantees and potential additional interest, plus income that cannot be outlived and flexible income choices.

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“Retirement income continues to be a major concern as people search for tools to protect and grow their savings,” said Eric Thomes, Allianz Life senior vice president of sales. “The Allianz 365i Annuity answers those concerns by providing the reassurance of having guarantees with the opportunity to earn additional interest.”

The Allianz 365i Annuity features a number of benefits, including indexed interest growth opportunities, a premium bonus, a 10-year declining surrender charge and flexible income choices. The Allianz 365i Annuity also offers a potential death benefit enhancement for beneficiaries equal to 25% of all interest credits.

In addition to the benefits of the base contract, Allianz 365i Annuity owners will have the opportunity to add the Income Maximizer Rider for an additional cost. This optional rider creates a protected income value for people to use for lifetime income withdrawals that gets credited with a 6% guaranteed interest roll-up and any additional earned interest based on their 365i index allocations. These credits continue until lifetime income withdrawals or annuitization begins.

 

The annual cost of the Income Maximizer Rider is 1.20% of the protected income value, which is deducted on a monthly basis from the accumulation value and the guaranteed minimum value, in most states.

 

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