Their retirement income assurance policy (RIAP) program addresses situations where employees become disabled before their normal retirement age and are no longer able to participate in their company’s retirement plan. Under the program, group LTD insurance is purchased by an employer to protect their employees who participate in the company’s 401(k), 403(b) or 457 qualified retirement plans from the effect that a disability could have on their future retirement income.
“The time has come for American companies with defined contribution retirement plans to implement RIAP for the benefit of their covered workforce,” said Paul D. Hinson, president of Pension Advisory Group. “In life insurance, waiver of premium is a well-established benefit. A similar 'waiver of contributions' benefit is needed in qualified retirement programs to ensure that elective deferrals by plan participants, and contributions by their employer, will continue as planned if the participant should become disabled.”
PAG is the Master General Agent for the RIAP program, while PFS is the Managing General Underwriter with full binding authority on behalf of Lloyd’s of London.
More information is available here.