SunTrust Adds Guaranteed Income Option to 401(k) Offering

SunTrust Banks has added a guaranteed lifetime income investment option, ClearCourse, to its institutional 401(k) investment platform.

A SunTrust announcement said ClearCourse is a “pension-like” savings option that provides participants with the ability to build a retirement paycheck for life through their 401(k) plan.

According to the announcement, it further offers participants both upside potential and downside income protection, through increases to the guaranteed income amount in the event of positive portfolio performance, yet no reductions to the guaranteed amount even if negative portfolio performance decreases the account balance.

“Now more than ever, we see a need for retirement income options that provide a level of protection in a fluctuating economic environment,” said Brenda Seliga, senior vice president and head of Employee Benefit Solutions at SunTrust, in the announcement. “Since 401(k) plans have replaced pension plans as a primary vehicle for retirement savings, both plan sponsors and their employees have begun to seek pension-like benefits and guaranteed income sources within their 401(k).”

ClearCourse is a group variable annuity designed for 401(k) plans and is issued and guaranteed by Genworth Life and Annuity Insurance Company.