Employers have long recognized the importance of providing robust retirement benefits to attract and retain talent. Pension plans, with their defined benefits for employees, stand out as a reliable solution. However, managing these plans carries significant financial obligations, often fraught with market risks. For HR professionals and benefits managers, the concept of guaranteed income solutions—bolstered...Read More
Pension risk transfer (PRT) transactions are becoming more popular as a way to offload pension liabilities and focus on core business. However, with their complexity, PRT strategies can pose significant risks if mishandled. When looking to execute a PRT transaction, it’s essential to understand potential pitfalls and implement strategies to avoid them. Here’s a concise...Read More
Planning for retirement is one of the most important financial decisions you will make. One of the most common retirement savings structures is the Defined Contribution (DC) plan, which plays a crucial role in ensuring financial security during your post-working years. Unlike traditional pension plans, where benefits are predetermined, DC plans place the responsibility of...Read More
For businesses managing employee pension plans, the decision to terminate a pension plan is complex and requires careful navigation. Whether you’re restructuring your business or facing financial challenges, the process involves legal, financial, and administrative considerations. This guide will outline what you need to know about pension plan termination, helping you stay compliant and protect...Read More
In the fast-paced world of business, securing a stable financial future for employees is paramount. Pension risk transfer (PRT) has emerged as a pivotal strategy for companies aiming to ensure their retirement obligations without bearing the associated risks. For business owners and HR executives, understanding PRT can be a game-changer in managing pension liabilities effectively....Read More
A 2024 Pension Risk Transfer Industry Whitepaper by DIETRICH Seizing Opportunities in a Dynamic Market This whitepaper explores the evolving landscape of pension risk transfers (PRTs), covering not only the short-term trends from 2022-2024, but also the longer-term perspective of where the industry is going and the impact on plan sponsors, advisors and participants. Multiple...Read More
“Total rewards is a pendulum. New benefits emerge, while older and little-used ones are phased out. Annual salary hikes come and go, depending on the economy. The same often goes for bonuses and other perks. Now, the latest point of conversation among total rewards experts is about one of the oldest benefits offerings: pensions….”Read More
One in five plan sponsors (22%) reported they were actively looking to switch advisers, with motivations including more service offerings and better participant communication and education, according to the 14th Fidelity Plan Sponsor Attitudes Study.Read More
In the first half of 2023 plan sponsors completed a record 289 pension-risk transfer transactions totaling $22.4 billion in premiums, according to a report from Aon, the largest PRT adviser.Read More
Despite the turbulence of 2022 and the losses for both stocks and bonds, many corporate defined benefit (DB) plans are finding themselves in a better funded status position than at the end of 2021. As such, the pension “end game” is coming into clearer focus, and sponsors are considering pension risk transfers (PRTs).Read More
