According to the announcement, the adjusted option will include versions from insurance companies AIG, MetLife, and the Principal Financial Group. The option is based on the Consumer Price Index (CPI-U) and allows individuals to receive automatic increases to their fixed income annuities based on the changes in the cost of living index.
The inflation protection annuity option will also be added to the platforms that Hewitt Associates, a global human resources services firm; Citistreet,a global benefits delivery firm; and Wealth Management Systems Inc., a provider of technology-based rollover products and services, make available to their clients. Additionally, IBM, a Hewitt client, will be among the first plan sponsors to make competitively bid inflation protected annuities available to its 401(k) participants (See (k)Plans: After Math ).
“Our Income Solutions immediate annuity platform offers individuals the opportunity to purchase institutionally-priced annuities which, due to the reduced cost and competitive quote process, generally results in higher monthly income payments than those purchased in the retail market. We are very pleased to be the first platform to offer competitively-quoted, CPI-linked annuity offerings, which complement the platform’s other income annuities,” said Kelli Hueler, president of Hueler Companies.
The Income Solutions program is available only to individuals whose recordkeepers, service providers, benefit consultants, corporate plan sponsors and advisors have partnered with Hueler to make these solutions available.
Hueler Companies is a technology and research firm offering resources for the analysis, research and implementation of stable value and annuity products. More information can be found at www.hueler.com .