Key Considerations for Pension Risk Transfer Solutions

This white paper discusses key considerations regarding the annuitant experience when de-risking a pension plan through a group annuity solution. It outlines the growing trend of pension risk transfer (PRT) transactions, where a group annuity contract is purchased from an insurance company to guarantee annuity payments. The document emphasizes the importance of understanding the annuitant profile, which predominantly includes Baby Boomers and Silent generation individuals, and their unique service needs. It details the fiduciary requirements outlined by the Department of Labor for selecting an annuity provider, highlighting the need for insurers to demonstrate both financial strength and effective communication capabilities. The paper also addresses the necessity for plan sponsors and consultants to evaluate the service delivery models of prospective insurers, ensuring they meet the expectations of annuitants. Additionally, it discusses the balance between digital and traditional service methods to cater to the diverse preferences of the annuitant population.