Tag: pension risk transfer

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.