Deals & People June 9, 2014

The Standard Names Two Consultants

Joe Bruns and Mark Schatzel have been appointed retirement plan consultants for the eastern sales region of StanCorp Equities, Inc. (The Standard).
Reported by

Brunswill support retirement plan advisers in the Baltimore-Washington metropolitan area. He has worked in retirement plan services for more than 14 years. Before joining The Standard, Bruns served as a vice president and client consultant for Manning & Napier Advisors. He has previously held sales positions at Fulton Financial Advisors, JP Morgan Retirement Plan Services and T. Rowe Price Retirement Plan Services.

Bruns holds a bachelor’s degree in economics from the University of Maryland in Baltimore County, as well as FINRA Series 7 and 66 securities licenses.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

Schatzelwill support advisers in Pennsylvania. He will be based in The Standard’s Philadelphia office. Schatzel has worked in the retirement plan services industry for more than 12 years. Most recently he was a Business Development Wholesaler with Lincoln Financial Distributors. Before that, Schatzel worked at Vanguard for nearly 10 years with expertise in group retirement plan education, investment support and sales support.

Schatzel was awarded a bachelor’s degree, summa cum laude, in finance from Immaculata University. He holds a Certified Retirement Plan Counselor (CRPC) designation, as well as the FINRA Series 6, 7 and 63 securities licenses. He also holds a Life, Health and Annuities insurance license.

The Markets June 9, 2014

80% of DB Sponsors Interested in Risk Transfer

Eight in 10 defined benefit (DB) plan sponsors expressed interest in pension risk transfer products.
Reported by

A survey by the LIMRA Secure Retirement Institute found, of the nearly 400 DB plan sponsors surveyed, one in five were unfamiliar with pension risk transfer products, and another 50% were only somewhat familiar with pension risk transfer products. Plan sponsors more familiar with the products were more interested in them, as were plan sponsors with frozen DB plans.

The survey found half of the traditional DB plans were still open to new participants, while 36% of plans were partially frozen and another 14% were fully frozen. Plans with more than $250 million in assets were more likely to be open to new participants than smaller plans (69% vs. 47%). The research revealed only 6% of plan sponsors said they plan to freeze their DB plan within the next two years. 

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The majority of plans sponsors surveyed (55%) use a liability driven investment strategy (LDI) to mitigate the financial risk of their DB plan. Other employers said they considered or implemented risk settlement options like lump-sum payouts and group annuity buyouts.

Among DB plan sponsors not very or not at all interested in pension risk transfer, the top reason is lack of knowledge. Other reasons given by plan sponsors for not considering a pension risk transfer product include using another method to address the risk, purchasing costs of annuities, and potential negative perceptions by stockholders.

“There is a misconception that the cost of transferring the risk through an annuity would be prohibitive but recent analysis by Mercer found that it was slightly cheaper for a plan sponsor to purchase a buyout for the retiree portion of its plan than it was to keep it in-house,” notes Alison Salka, senior vice president and director of the LIMRA Secure Retirement Institute (see “DB Sponsors Should Not Be Reluctant to Transfer Liabilities”). “We expect the growing impact of DB plans on balance sheets is going to drive more CFOs and others in finance to learn about and consider pension risk transfers in the future.”

«