TMCnet News
Helping Defined Benefit Plan Sponsors Clear Up Annuity Purchase MisconceptionsDES MOINES, Iowa --(Business Wire)-- Pension risk management is an ongoing process, and in an ever-changing environment, it can be a challenge for plan sponsors to manage the risks of their defined benefit plans. A new white paper from the Principal Financial Group® aims to clear up the confusion around annuity purchases and help plan sponsors make informed decisions. The paper, What Can We Learn From Six Common Annuity Purchase Misconceptions?, guides plan sponsors through different scenarios while illustrating the potential impacts on a defined benefit plan. Taking a solution-neutral approach, it provides a comprehensive look at each scenario and includes information to help analyze various risk management options for each unique situation. "Like any risk-management strategy, an annuity purchase requires careful consideration to determine if it will meet long-term bjectives. It's critical for plan sponsors to understand the impact of the annuity purchase on future plan finances, plan risks and also what other risk-management strategies might be needed to meet objectives," said Mike Dulaney, senior consulting actuary at The Principal®. "By better understanding the true impacts on their defined benefit plans, plan sponsors can more effectively weigh their risk-management options and implement strategies that help meet their goals," Dulaney said. The Principal is the number one service provider of defined benefit plans1 and a leader in pension risk management2. For more research, analysis and insights, visit The Principal Knowledge Center and connect with us on Twitter.
About the Principal Financial Group
1 PLANSPONSOR DB Administration Survey, 2013.
|