A new generation of guaranteed and non-guaranteed income products, strategies and solutions offered as part of a 401(k) plan allows employers to ease the burden of their employees by helping to ensure that their nest egg lasts as long as they do. This essentially helps plan participants create their own “personal pension.”
Industry research points to a growing interest by plan participants in having their employer provide retirement-income products and solutions. Although some plan sponsors have made retirement income available as part of their defined contribution plan, many have remained on the sideline to see how the retirement income market develops and evolves. Therefore, a primary focus of the IRIC is to educate plan sponsors and their consultants about the range of products and solutions that are available in the institutional marketplace. By raising market awareness, providing a framework and creating evaluation tools so that products can be easily understood, the IRIC will make it easier for plans sponsors and their consultants to select the most appropriate solutions for plan participants.
A few years ago, IRIC began making available Product Fact Sheets to assist plan sponsors, consultants, and advisors in the process of comparing retirement income products. In recent years, product sheets have expanded to include non-member products and non-guaranteed products. The Product sheets are updated annually and are available further down this page.
Carrying out fiduciary duties when adding a guaranteed retirement income option to a DC plan is indeed a new process for plan sponsors and their advisors. To help advisors and sponsors better understand the fiduciary process as it applies to the integration or addition of guaranteed income into a defined contribution plan, IRIC members have crafted a white paper and fiduciary checklist for guaranteed products. In this paper, ERISA attorneys and / OR IRIC members Fred Reish, Bruce Ashton and Martin Schmidt discuss the legal standards governing a fiduciary’s decision as well as practical tools to help evaluate the claims paying ability of an insurer when offering an insured retirement income product, particularly in choosing the insurance carrier that offers the feature.
The Lincoln Fiduciary Review Process White Paper
A grid summarizing the different product types, a high-level description, nature of the income generated, fee structure, and a list of product manufacturers. It helps consultants and plan sponsors gain an understanding of the different types of institutional retirement income products currently available in the marketplace.
Types of Institutional Retirement Income Products Overview
RAC Retirement Income Pres Proposal – PDF
RAC Retirement Income Proposal – PPT
A grid highlighting the key criteria to be used when comparing retirement income products. It provides consultants and plan sponsors with the framework to compare different retirement income options on behalf of the plan sponsor.
In conjunction with the product sponsors, IRIC has prepared the Product Fact Sheets for several of the retirement income solutions offered in the marketplace. These reference documents will allow plan sponsors, advisors, and consultants to engage in an objective analysis based on a consistent approach to comparing retirement income products. Additional Product Fact Sheets for both insured and non-insured lifetime income products will be available soon.
Non-insured Product Solution – Spend Safely in Retirement
TIAA Custom Default Portfolios Model Service Fact Sheet
Prudential IncomeFlex Target Product Fact Sheet
To view the Fact Sheet for Prudential IncomeFlex Target click below.
Great-West SecureFoundation II Variable Annuity Product Fact Sheet
To view the Fact Sheet for Great-West SecureFoundation II Variable Annuity click below.
Lincoln Secured Retirement Income Fact Sheet
To view the Fact Sheet for Lincoln Secured Retirement Income click below.
Principal Life Insurance Principal Pension Builder Product Fact Sheet
To view the Fact Sheet for Principal Life Insurance Principal Pension Builder click below.
Morningstar Retirement Manager with Income Secure
To view the Fact Sheet for Morningstar Retirement Manager with Income Secure product click below.
Principal Life Insurance Principal Pension Builder
To view the Fact Sheet for Principal Life Insurance Principal Pension Builder product click below.
Prudential IncomeFlex Target®
To view the Fact Sheet for Prudential IncomeFlex Target® product click below.
AllianceBernstein Lifetime Income Strategy
To view the Fact Sheet for AllianceBernstein Lifetime Income Strategy product click below.
Lincoln Secured Retirement Income
To view the Fact Sheet for Lincoln Secured Retirement Income product click below.
MassMutual Lifetime Income
To view the Fact Sheet for MassMutual Lifetime Income product click below.
Mutual of Omaha Lifetime Guaranteed Income Account
To view the Fact Sheet for Mutual of Omaha Lifetime Guaranteed Income Account product click below.
Transamerica SecurePath for Life
To view the Fact Sheet for Transamerica SecurePath for Life product click below.
John Hancock Guaranteed Income for Life
To view the Fact Sheet for John Hancock Guaranteed Income for Life product click below.
Click below to read the full paper.