BCG Terminal Funding Company Advises Hickory Springs on First Buy-In Pension Risk Transfer in United States

Innovative New Solution Helps Retirement Plan Sponsors Meet Pension Obligations

BOSTON--(BUSINESS WIRE)-- BCG Terminal Funding Company (BCG), one of the nation’s largest terminal funding consulting/placement firms, today announced that it has served as advisor to Hickory Springs Manufacturing Company in the first pension “Buy-In” transaction in the U.S.

“BCG is proud to execute the first ‘Buy-In’ transaction in the United States” said Michael Devlin, Principal at BCG Terminal Funding Company. “Our client is committed to their pension plan and they recognize the importance of this benefit to its employees. But like many other companies across the nation the risk associated with their pension plan has become a serious concern over the years. With the introduction of the ’Buy-In’ strategy to the U.S. pension market, a product is now available to eliminate interest rate, market and mortality risk and help our client continue a valuable benefit for their employees.”

Advised by BCG, the Hickory, N.C.-based manufacturer signed on as the inaugural client of Prudential Financial Inc.’s Portfolio Protected Pension Buy-In product, a separate account solution that helps plan sponsors move pension risk and better fulfill their pension obligations, heralding the entry of this type of product into the United States marketplace. Prudential Retirement is a business unit of Prudential Financial, Inc. (NYSE: PRU).

“We selected BCG as our advisor because they are a leader in their field and have years of experience advising pension plan sponsors on how to eliminate part or all of their pension risk” said Steve Ellis, CFO of Hickory Springs. “We are pleased to be part of this ground-breaking transaction in the U.S.”

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 without triggering a settlement, accelerating contributions or significantly impacting funding levels.

The Prudential Portfolio Protected Buy-In mitigates plan sponsors’ pension plan risks by: serving as a plan asset; providing guaranteed payments to the plan; effectively and simply matching assets to liabilities; maintaining the plan’s funded status; and reducing accounting and funding volatility.

About BCG

BCG Terminal Funding Company is one of the largest terminal funding consulting/placement firms in the nation and has completed more than 2,000 transactions since its founding in 1983. BCG specializes in working with plan sponsors who are looking for strategies to de-risk, or terminate, their defined benefit pension plan. BCG partners with top-quality insurance companies who benefit from BCG’s unequaled depth and breadth of experience in the terminal funding field. BCG offers a wide range of services for companies who sponsor defined benefit plans including satisfying DOL Interpretive Bulletin 95-1, plan termination liability analysis, and plan liability analysis. BCG serves benefits consultants, enrolled actuaries, ERISA attorneys, insurance agents, and plan sponsors.

About Hickory Springs

Hickory Springs Manufacturing Company's corporate headquarters is located in Hickory, North Carolina. The international company was founded in 1944 as a producer of furniture springs. Since then, Hickory Springs has grown into one of the nation’s largest integrated manufacturers to the furniture and bedding industries with more than 50 operating facilities in 16 states and China. In addition to its core furniture and bedding markets, Hickory Springs serves a growing range of customers in the transportation, health care, government, packaging, construction, and consumer products industries.

About Prudential Financial

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $859 billion of assets under management as of March 31, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/

ForBCG Terminal Funding Company
Media:
Peter B. Roche, 860-210-0316
or
Corporate:
Michael E. Devlin, 800-566-0046 x 403

Source: BCG Terminal Funding Company