The department believes an oversight bureau, created to assess the financial strength of annuity providers, would help employers and advisers become more comfortable including annuities in retirement plans.
And nearly two-thirds, 63%, of advisers recommend annuities to clients who need income.
Certain policy changes and the right support for plan sponsors could make it easier for plans and participants to embrace lifetime income solutions.
The Prudential Insurance Company of America has agreed to provide a group annuity contract and take on approximately $1.3 billion in pension liabilities from International Paper, focusing on vested employees with smaller monthly benefits.
With one-quarter of a century until the first of them turn 65, Millennials very much view themselves as "on their own" with regard to retirement income, according to an IRI report.
However, Rick Jones, with Aon, says, “Pension risk transfer is a trillion dollar market, and much more will be settled in coming year."
In-plan lifetime income options can secure certain benefits participants may not find in retail solutions, suggests a new study by TIAA.
Several Americans across generations fear their portfolios aren’t diversified enough to secure a comfortable retirement in the event of a market correction.
Despite the generally positive perceptions of the benefits of guaranteed lifetime income, only one in four survey respondents age 45 and up plan to purchase an annuity.
Fifteen percent say recommendations from their consultant or independent fiduciary is an important consideration when selecting an annuity provider.
The plaintiff alleges that the contract’s cancellation was not made with his and the other beneficiaries’ interests in mind, but rather to improve the parent/subsidiary companies’ financial positions and to make them a more attractive target for potential buyers.
This was the sixth straight quarter fixed sales have outperformed variable annuity sales, which hasn’t happened in almost 25 years.
Overall DB plan costs, costs from changing mortality assumptions and PBGC premium hikes are all factors plan sponsors take into consideration when deciding whether to implement a pension risk transfer.
Aria’s RetireOne Platform Offering Variable Annuity; Vanguard Launches Global Balanced Funds; Pensionmark Rolls Out New Investment Reporting Tools; and more.
The researchers conclude that “including well-designed LIA defaults in DC plans yields quite positive consequences for …workers.”
The university is just the latest to face an ERISA class action lawsuit filed by one of its employees, alleging imprudence in the management of retirement planning benefits.
There has been at least $1 billion worth of U.S. single premium pension buyout sales during each of the last eight quarters.
Plan sponsors can provide participants with a variety of tools to help them determine whether they are on the right track to retire on time.
The firm has consistently been an early mover in announcing fiduciary rule implementation plans—and that trend continued this week with the news that ML advisers will retain some access to commission-based IRAs.
Retirement plan advisers can help their plan sponsor clients take advantage of emerging opportunities for better deals and service coming out of fierce competition among asset managers.