Transamerica Launches Group Annuity For Retirement Plans
Transamerica announces the availability of a custom stable value separate account product developed specifically for 403(b) retirement plans. The Transamerica Capital Preservation Option is a group annuity contract issued by Transamerica Life Insurance Company.
Unlike most general account or pooled separate account stable value products available to 403(b) retirement plans, Transamerica's new stable value solution offers transparency and flexibility regarding its crediting rate, expense ratio, and underlying separate account mandate.
- The fee for the Transamerica Capital Preservation Option is based on an expense ratio that is explicitly stated.
- Crediting rates are calculated annually using a contractually specified crediting rate formula. Plans that implement this option by the end of the second quarter of 2020 are guaranteed a minimum crediting rate of one percent for the life of the contract.
"Transamerica is pleased to offer this innovative stable value solution to employers with 403(b) retirement plans for their employees," said Blake Bostwick, Chief Executive Officer, Workplace Solutions at Transamerica. "With the Transamerica Capital Preservation Option, plan sponsors can rely on contract features including a transparent crediting rate formula, an array of best-in-class underlying fixed-income managers, and contract termination provisions that allow plan sponsors to take a market value gain over the contract balance. These are features that 403(b) retirement plan sponsors appreciate."
The Transamerica Capital Preservation Option is available on an investment-only basis. The Transamerica Capital Preservation Option is available in all states except New York, Minnesota, and California. Minimum investments start at $40 million for 403(b) retirement plans, although Transamerica may consider smaller amounts.
"With Transamerica's experience in recordkeeping large-market 403(b) plans, and experience as a leading issuer of synthetic guaranteed investment contracts, we created a stable value product that meets the needs of 403(b) retirement plan clients and their trusted advisors," said Kent Callahan, Senior Managing Director of Workplace Distribution and Head of Client Engagement at Transamerica. "We listen closely to the requests of our plan sponsor clients, and the introduction of this new investment choice is evidence of our dedication to meeting the specific needs of not-for-profit organizations as they help their employees plan for retirement."
About Transamerica
With a history that dates back more than 100 years, Transamerica is recognized as a leading provider of life insurance, retirement and investment solutions, serving millions of customers throughout the United States. Recognizing the necessity of health and wellness during peak working life, Transamerica's dedicated professionals work to help people take the steps necessary to live better today so they can worry less about tomorrow. Transamerica serves nearly every customer segment, providing a broad range of quality life insurance and investment products, individual and group pension plans, as well as asset management services. In 2019, Transamerica fulfilled its promises to customers, paying more than $50 billion in insurance, retirement, and annuity claims and benefits, including return of annuity premiums paid by the customer. Transamerica's corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa. Transamerica is part of the Aegon group of companies. Based in the Netherlands, Aegon is one of the world's largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2019, Aegon managed over $1 trillion in revenue generating investments. For more information, please visit www.transamerica.com.
About Transamerica Capital Preservation Option
The Transamerica Capital Preservation Option is a guaranteed non-pooled separate account offered through Transamerica Life Insurance Company, 4333 Edgewood Rd. NE, Cedar Rapids, IA 52499, which provides the guarantee of principal and interest. The Transamerica Capital Preservation Option is a group annuity contract and not a mutual fund or a collective trust and is exempt from SEC registration; therefore, no prospectus is available. Guarantees are based on the claims-paying ability of the issuing insurance company. Product features and availability may vary by state and may not be available in all states. TMAF1300-0118, TMAF1400-0119, and TMAF1500-0119.
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