An asset manager has selected an income annuity vendor for a new type of 401(k) plan funding product.
Barclays Global Investors N.A., San Francisco, a unit of Barclays Bank P.L.C., London, will be using a unit of MetLife Inc., New York, to supply income annuities for the company’s SponsorMatch program.
Employers that use the program to match employees’ contributions will get a combination of a target-date asset allocation fund, a classic institutional investment portfolio and an income annuity.
The program is designed to offer employees a both market growth and a guaranteed income stream, Barclays says.
MetLife will supply the deferred fixed income annuities in the accounts, Barclays says.