A MetLife news release said its Personal Pension Builder provides employees with the ability to accumulate future guaranteed income for retirement while they’re still working.
“Having a source of guaranteed income for life is critical, as many people underestimate just how long retirement will last and how much it will cost,” Dorit Murciano, vice president, MetLife Retirement & Savings, said in the announcement. “Personal Pension Builder is intended to help employees achieve their retirement goals by creating future income today. Simply stated, it’s like a ‘personal pension plan’ — combining the personal savings features of a 401(k) plan with the guarantees of a traditional pension plan.”
The new product has two phases – the accumulation phase, during which employees may purchase — through payroll deduction — guaranteed sources of future income, and the retirement phase , during which employees receive a fixed monthly income for as long as they live.
The accumulation phase offers four guarantees:
- a specific income benefit amount purchased at today’s prices
- the income the worker accumulates for retirement is guaranteed for life
- the interest rate used to calculate the future price for income benefits will never be less than 3%
- the beneficiary will receive a death benefit of premium accumulated at 3% if the employee dies during the accumulation period.
Additional product benefits include, according to MetLife:
- the option to “dollar cost average” into a future income stream, as each contribution is guaranteed based on current rates
- the flexibility to adjust contributions and to make lump sum contributions at any time to ensure the desired level of income at retirement
- the ability to select income options that provide continuing income to someone else in the event of death
- the option of taking some or all of the accumulated income benefit in cash within 60 days following the benefit start date.