Prudential Completes Nation’s First Pension Buy-In Transaction
Copyright: | (c) 2011 Investment Weekly News via VerticalNews.com |
Source: | NewsRx |
Wordcount: | 854 |
Prudential Retirement announced the completion of the nation's first pension buy-in transaction.
Prudential's Portfolio Protected Buy-in, the company's newest addition to its range of pension risk transfer products, is a separate account solution that combines the strength of Prudential's guarantee with a separate account portfolio to provide additional security. The product is specifically designed for defined benefit plan sponsors who seek to transfer risk while preserving plan funded status. Portfolio Protected Buy-in does not trigger settlement accounting or accelerate pension contributions.
"Prudential is pleased to be the first company to bring a pension buy-in to employers in the U.S. We are also honored to be Hickory Springs' provider of choice," said
"Prudential's Portfolio Protected Buy-in will help Hickory Springs reduce its pension plan risk and fulfill its fiduciary obligations," Waldeck continued. "This transaction underscores Prudential's ability to deliver flexible, innovative solutions that combine our core strengths in retirement, insurance and asset management."
The Portfolio Protected Buy-in mitigates plan sponsors' pension plan risks by serving as a plan asset that effectively and simply matches assets to liabilities.
"The financial crisis of 2008-2009 has had a profound and lasting impact on many employers that offer traditional pension plans," said
"BCG is proud to execute the first pension buy-in transaction in
The Portfolio Protected Pension Buy-in is issued by
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