Interest is high but there are still plenty of employers with pension plans who don’t know or are just vaguely aware of pension risk transfer products.
That’s according to the latest survey by the LIMRA Secure Retirement Institute, which found that 80 percent of employers who offer defined benefit retirement plans say they are interested in pension risk transfer products.
Yet one in five of the nearly 400 DB plan sponsors polled were not familiar with pension risk transfer products and half were only somewhat familiar with such products. Plan sponsors who were more familiar with them expressed greater interest, as did plan sponsors with frozen plans.
“Managing the financial liability around a company’s pension plan is one of the most challenging responsibilities for a company,” said Alison Salka, senior vice president and director of the LIMRA Secure Retirement Institute. “It is critical that the decision-makers at these companies understand all of the financial options to manage their pension liability to make an informed decision that serves the unique needs of their company.”