Designed for defined contribution plan participants age 50 or older, SecurePath for Life is built around a series of index-based target date funds from the Vanguard Group.
According to a press release, key features of SecurePath for Life include:
- Guaranteed lifetime income beginning at or after age 55 which will equal a percentage of the participant’s income base;
- A special annual “step-up” feature that can enhance the participant’s guaranteed income as a result of market gains;
- Underlying target-date funds which are managed by the Vanguard Group;
- Flexibility to transfer money in or out of the option to other options in the plan as desired (transferring money out of SecurePath for Life could reduce or eliminate the guaranteed income amount); and
- Death benefits that allow participants to pass value on to their heirs.
“By bringing together the best features of traditional annuities and today’s popular target-date funds in the form of an option that can be seamlessly integrated into a plan sponsor’s existing defined contribution plan, SecurePath for Life addresses many important aspects of retirement planning,” said Gerry Katz, senior vice president of Diversified, in the announcement.