Summary
This report presents the findings of MetLife's 2023 Pension Risk Transfer (PRT) Poll, which surveyed 250 plan sponsors regarding their strategies for managing defined benefit (DB) pension plans amid a challenging market environment. The report outlines the increasing trend of pension risk transfer transactions, driven by macroeconomic factors such as inflation, market volatility, and rising interest rates. Key findings indicate that 89% of plan sponsors plan to completely divest their pension liabilities in the future, with many preparing their plans for a risk transfer by improving data quality and increasing contributions. The report also details the catalysts for initiating pension risk transfers, including favorable annuity buyout pricing and the growing number of retirees. Furthermore, it highlights the involvement of C-suite executives in DB plan management and the importance of monitoring annuity buyout rates. Overall, the report underscores the robust outlook for the pension risk transfer market in the coming years.
