Business & Finance
NEWARK, N.J.--([ BUSINESS WIRE ])--Prudential Retirement is urging its defined benefit clients to consult plan actuaries and investment strategists as they evaluate the financial health of their defined benefit plans and review new pension plan de-risking opportunities provided under the Pension Protection Act of 2006. Prudential Retirement is a business unit of Prudential Financial, Inc. (NYSE: PRU).
"Prudential has ramped up its team to offer actuarial analysis, consulting and information to our defined benefit clients to ensure optimal implementation and seamless administration during this process."
As a result of rules established by the Pension Protection Act of 2006 that will next year change the interest rates for calculating minimum lump sum benefits for qualified pension plans and finalize the gradual transition to corporate bond rates, the size of defined benefit lump sum payouts will generally shrink in 2012 relative to payouts under prior rules.
aPlan sponsors and participants are seeking counsel on these new rules. As a leading retirement plan administrator, it is Prudential Retirementas responsibility to provide guidance to our defined benefit clients and help them develop a more cost-effective benefit risk transfer strategy for both active and frozen plans,a said Joan Bozek, vice president, Defined Benefit Product, Service, and Operations, Prudential Retirement. aPrudential has ramped up its team to offer actuarial analysis, consulting and information to our defined benefit clients to ensure optimal implementation and seamless administration during this process.a
Prudentialas new white paper, a[ Retirement Plan Strategies: De-risking pensions a" emerging opportunity through lump sum cash-outs under the Pension Protection Act of 2006 ],a is based on market research conducted by Prudential Retirement that explains the opportunity and outlines the advantages, decision points and offers a framework for the transition of the process. Chief financial officers and heads of human resources departments were interviewed to gain a better understanding of their knowledge of various forms of pension risk transfer management and techniques.
aWhile there is an accelerating rate of acceptance for adding lump sum payout provisions to pension plans, through this research, we have learned that many plan sponsors have yet to explore the variety of financial advantages of the cost effective and easily administered risk transfer strategy,a continued Bozek.
Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of over 3.6 million participants and annuitants. Prudential Retirement has $214.7 billion in retirement account values as of September 30, 2011.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $871 billion of assets under management as of September 30, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudentialas diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudentialas iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit [ http://www.news.prudential.com/ ].
Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affiliates.
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