Tag: pension risk transfer

Actions taken by defined benefit (DB) plan sponsors helped them reduce Pension Benefit Guaranty Corporation (PBGC) premiums, according to a J.P. Morgan analysis.

In 2018, single premium buy-out product sales peaked at $26 billion, more than 14% higher than 2017, according to LIMRA Secure Retirement Institute’s quarterly U.S. Group Annuity Risk Transfer Survey.

The agency previously announced it would amend required minimum distribution regulations in a way that would prohibit the offering of lump-sum windows to defined benefit (DB) plan participants already retired and in pay status.

In December 2018, certain of the corporation's pension plans used pension trust assets to purchase group annuity contracts from insurance companies for $2.6 billion.

The majority of DB plan sponsors plan to completely divest all of their company’s liabilities in the near future

A look at some of the products and services retirement plan sponsors are requesting outside of 401(k) plans.

A lawsuit filed by a participant whose benefit liability was transferred to MetLife in a pension risk transfer (PRT) deal is still ongoing.

According to Mercer, developing a “journey plan” that outlines the strategic policy choices to move a plan to its ultimate destination is a step many plan sponsors have undertaken.

Consultants with Findley discussed a game plan for having data, financials and a communications strategy ready before embarking on a DB plan termination.

It will offer lump sums to participants and transfer the remaining money to a group annuity contract from Athene Annuity and Life.

MassMutual will take on approximately $50 million of the company’s pension plan obligations.

According to Brian Donohue, with October Three Consulting, the master strategy to get to full-funding-but-no-surplus on termination is to reduce plan risk by gradually changing the plan’s asset strategy as the plan approaches full funding—the “glide path” strategy that some sponsors have adopted.

MassMutual has issued a white paper outlining all considerations for defined benefit plan sponsors considering a pension risk transfer.

The company will offer a lump-sum distribution window to certain participants and transfer certain retiree assets to a group annuity.

This is more than double the sales in the second quarter of 2017.

Raytheon is the latest large employer to enter into a group annuity transaction, transferring nearly $1 billion in benefit obligations to Prudential.

According to the text of the complaint, the action seeks to hold MetLife accountable for the company’s conversion of more than $500 million in annuitized retirement benefits, interest, and unlawful profits over the last 25 years. State regulatory authorities in Massachusetts are also getting involved.

They have until mid-September to deduct pension plan contributions at the rate of 35%; after that, the lower 21% rate kicks in.