What You Need to Know
- Many carriers are hoping the Secure Act will produce new lifetime income option business.
- Legal & General and LIMRA say second-half pension risk transfer activity should be strong.
- Insurers in the market have developed a set of model buyout commitment agreements.
Allianz Life Insurance Co. of North America is aiming for the new Secure Act 401(k) plan annuitization market with by launching the Allianz Lifetime Income+ Annuity.
The Secure Act includes provisions that now encourage sponsors of 401(k) plans and other defined contribution plans to add lifetime income annuity features.
The new Allianz Life annuity will help a plan participant turn retirement plan account assets into a stream of lifetime income.
Allianz Life has also hired Mike De Feo to lead a new defined contribution distribution team.
De Feo was previously head of the retirement and defined contribution investment-only business at Voya Financial’s Voya Investment Management arm.
In the wake of its demerger from Prudential plc, Jackson announced a new fee-based annuity product, the Jackson Retirement Investment Annuity, which will be targeted toward independent RIAs. The annuity will cost 0.30% during the deferral period and 0.75% during the withdrawal period. Also, consumers will have access to 110 institutionally managed and priced subaccount options.
Equitable, an arm of Equitable Holdings, is ramping up by adding customized managed accounts and a cash balance plan to the menu of retirement plan options it markets to small and medium-sized businesses.
Cash-balance plans give employers a way to offer defined benefit pension plans funded using a simple, one-year-at-a-time funding formula, rather than a formula based on the assumption that a worker will stay with the same employer for decades.
The customized managed accounts option will give employers a way to offer a broader range of investment options.
Equitable is working with Stadion Money Management to provide the customized managed accounts option.
Lincoln Financial Group
Lincoln has introduced the Lincoln PathBuilder Income powered by the YourPath program.
The program gives retirement plan sponsors a way to combine an annuitization option with a menu of plan investment options based on target-date investment portfolios.
A target-date portfolio is designed to shift assets toward lower-risk investments as participants near the anticipated retirement age.
Lincoln says the new program includes the tools an employer will need to show that it has met the Secure Act requirements for assessing an annuitization option provider.
Voya Financial has introduced the Voya/RAM Focus Stable Value Fund, a fund designed for use in 401(k) plans and other defined contribution plans.