New York Life Launches Guaranteed Interest Pension Account

One of the benefits of the guaranteed interest pension account, according to New York Life, is that it answers thePension Protection Act's requirement that liabilities be accounted for in the near term segment, or the first five years of a plan, by providing an investment option with a guarantee of principal and competitive yields.

“The PPA changed the investment dialogue for pension plans,” Steven Dorval, managing director and head of retirement investments at New York Life Investments, said in a press release. “Sponsors and advisors are focused on funding their liabilities. We are working with clients to help meet their liability needs within the three distinct liability segments defined by the PPA, as they consider a range of options, including moving toward a liability driven investment (LDI) model. GPA is a solid solution.”