An insurer has come out with a new approach to thinking about employer-sponsored defined contribution retirement plans, in an effort to restore confidence in the viability of the concept.
Prudential Financial Inc., Newark, N.J., says the new “Redefining Retirement” program is “a new model for the design, management and administration of workplace-provided retirement plans.”
The recent financial crisis cost Americans $1 trillion in a retirement savings and has caused plan sponsors, plan participants, and regulators to question the ongoing viability of defined contribution programs, according to Christine Marcks, president of Prudential’s Prudential Retirement business.
The new program will try to address those concerns, the company says.
The company will offer plan participants a retirement “glide path” to help them collect income through retirement, using features such as Prudential’s IncomeFlex Target guaranteed minimum withdrawal benefit product.
Prudential is offering plan sponsors more “levels of fiduciary risk support and enhanced levels of indemnification.”