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Transamerica, Sage Advisory Team Up for Cash Balance Plan Solution

An employer that sponsors a cash balance retirement plan will consult with the plan’s adviser to select one of three investment solutions independently managed by Sage Advisory Services.

By PLANSPONSOR staff editors@plansponsor.com | May 23, 2017

Transamerica introduced the Transamerica Sage Cash Balance Solution to help small and mid-size businesses with retirement planning.

An employer that sponsors a cash balance retirement plan will consult with the plan’s adviser to select one of three investment solutions independently managed by Sage Advisory Services. The growth, moderate or conservative investment strategies are designed and managed to meet common cash balance plan objectives, including principal protection, common interest crediting rate targets, and an awareness of the annual investment time horizon.

The plan’s adviser will work with the sponsor to ensure that the investments meet the plan’s needs in helping prepare employees for retirement. The plan sponsor will select its preferred third-party administrator and actuary to serve the plan with the adviser’s guidance. The plan sponsor and adviser can rely on Sage Advisory Services for portfolio construction and ongoing investment management. The three investment strategies are created specifically for employer-sponsored retirement plans and are built to help cash balance plan sponsors manage risks while potentially enhancing investment returns.

“Cash balance plans are increasingly used by small and mid-sized businesses to help their employees prepare for a secure retirement. Cash balance plans can help businesses maximize their retirement plan contributions and accelerate employees’ retirement savings,” says Jim Kais, Transamerica senior vice president.  

Cash balance plans are employer-sponsored retirement plans that offer lower risks and more predictable costs for the employer than defined benefit plans. Like 401(k) plans, cash balance plans allow employees to have transparent individual account balances, along with optional IRA rollovers if the employee leaves the company.

“We’re proud to work with Sage Advisory Services to make investing for retirement easier for small and mid-size businesses,” adds Kais. “We’d like to make it possible for more employees to benefit from the retirement savings offered by their employer’s cash balance plan. Our goal is to help people achieve a lifetime of financial security.”

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