Nationwide is introducing a group non-variable indexed annuity designed for use inside retirement plans.
Nationwide says the Nationwide Indexed Principal Protection group annuity will be part of a new family of in-plan group annuities. The Columbus, Ohio-based insurer is preparing to launch the other in-plan annuities in 2021.
Plan participants can invest in the annuity without meeting an investment minimum.
The crediting rate for the annuity will be linked to the performance of the S&P 500 Daily Risk Control 5% USD Excess Return Index.
Nationwide will provide a crediting rate floor of 0%, meaning that it has promised to protect the value of the plan participants’ principal even if the S&P 500 Daily Risk Control 5% USD Excess Return Index goes down.
Participants can move cash into the annuity up to four times per year, and they can move cash out of the annuity at any time without incurring a contingent deferred sales charge.
Nationwide says the other products in the new in-plan group annuity family will be lifetime income options that connect income guarantees with use of target date funds. The new funds will annuities will be designed to meet qualified default investment alternative standards, the company says.
Nationwide is issuing the product through Nationwide Life Insurance Company.
In other group annuity market news:
Transamerica — a Baltimore-based arm of Aegon — says it will work with another Aegon affiliate, Aegon Asset Management, to offer a Transamerica DB Complete package of defined benefit pension plan management services.
The package will include pension consulting services, fiduciary advisory services, and fixed-income investment advisory services.
In related news, the Pasadena Chamber of Commerce has picked Transamerica to be the recordkeeper for a new multiple employer retirement plan, or MEP.