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Pension Risk Transfer
Successful and Seamless Execution To Help You Achieve Your Risk Management Goals.
See how much you could save with a pension risk transfer
What is Pension Risk Transfer?
Pension risk transfer is a critical financial option for employers, specifically those who want to minimize fluctuations by decreasing Pension Benefit Guaranty Corporation (PBGC) premiums, managing risk and planning for the plan's fate. Transferring risk can benefit your company and set the stage for a financially secure future.
Pension risk transfer (PRT) is the process of shifting a portion or all of a defined benefit plan's liability away from the business that sponsors a pension plan to a third party. A defined benefit (DB) plan is an employer-sponsored retirement plan in which participants accrue a monthly benefit based on the plan's benefit formula. From there, once a participant has reached retirement age, that benefit is paid monthly, based on the form of payment selected.
What Are the Benefits of Pension Risk Transfer?
Pension risk transfer offers several benefits for businesses and pension plan participants:
Transferring pension obligations to an insurance company helps mitigate various risks, including investment volatility, interest rate fluctuations, and longevity risk. By offloading these risks to a third party, companies can better manage their financial exposure and ensure the stability of pension payments to retirees.
Pension risk transfer allows businesses to reduce their long-term financial obligations by transferring pension liabilities to an insurance company. This can improve the company's financial position, reduce balance sheet volatility, and enhance shareholder value.
Pension risk transfer simplifies administrative tasks by transferring responsibility for pension payments to an insurance company. This frees up resources and allows companies to focus on their core business activities.
Pension Risk Transfer with October Three
Our comprehensive approach to Pension Risk Management ensures positive outcomes for clients of all sizes. We work with you from start to finish to clearly define pension goals, create a customized roadmap and deliver successful results based on decades of best practice experience. Our attentive professional support helps ensure you receive the lowest cost available for your annuity purchase, and our focus on transparency ensures you see that cost up front.
Options are explained in plain English so decisions can be made with confidence.
Conflict-free guidance focused on your specific needs.
Our comprehensive approach ensures you receive 'Best Pricing' from insurance companies.
Participant communication materials and expert support that ease the burden on plan sponsors and actuaries.
With over 25+ years of experience, you can be confident you'll receive the best options available for your plan.
All facets of your transition are continually monitored to ensure a successful outcome. Services extend beyond simply identifying insurance companies.
Achieving Your Pension Risk Transfer Goals
We align our approach with your interests. Detailed criteria is used to carefully evaluate each participating insurance company so you receive the financial due diligence needed to fulfill your fiduciary obligations. Our seasoned pension risk transfer professionals aggressively negotiate annuity pricing for you with participating insurance companies. We understand that predictable pricing is important, which is why you will receive a competitive bid that includes a comprehensive scope of services up front – minimizing the need for out-of-scope work.
Focus on transferring pension risk and plan liability to an insurance company. Our approach secures successful outcomes that:
Maximize Savings
Minimize Costs
Deliver a Seamless Transition
Focus on compliance to protect the best interests of beneficiaries and plan participants. Our process ensures you meet all fiduciary requirements by:
Selecting the "Safest Available Annuity" provider per DOL Interpretive Bulletin 95-1
Negotiating a competitive and well-structured annuity contract
Securing state protection, where available
Why Choose October Three's Annuity Services?
Multidisciplinary expertise drives positive outcomes for clients of all sizes from start to finish
Comprehensive preparation delivers optimal, conflict free, annuity pricing
25+ years of expertise negotiating with the insurance industry
October Three Pension Risk Transfer Consulting Services Include:
• Retirement Plan Liability Management Analysis
• Pension Forensics
• Pension Risk Defeasance Options
• Pension Risk Transfer Strategies
• Lump Sum Window Fulfillment
• Comprehensive Annuity Searches & Cost Negotiations
• Market Pension Plan Liability Transfer
• Department of Labor 95-1 Financial Analysis
• Plan Termination Services
• Address Verification & Death Audits
Pension Risk Transfer Resources
Frequently Asked Questions
Companies that typically consider pension risk transfer are those with defined benefit pension plans. These plans promise retirees a specific monthly benefit for life, based on factors like salary and years of service. However, managing these plans can expose companies to various risks, including market fluctuations, longevity risk, and regulatory changes.