Prudential Issues White Paper on De-Risking Pensions

December 12, 2011 ( – Prudential Retirement has issued a white paper to provide guidance on de-risking defined benefit retirement plans. 

The white paper, Retirement Plan Strategies: De-risking pensions – emerging opportunity through lump sum cash-outs under the Pension Protection Act of 2006,” is based on market research conducted by Prudential Retirement that explains the opportunity, outlines the advantages and decision points, and offers a framework for the transition of the change for calculating minimum lump sum benefits due to the rules established by the Pension Protection Act of 2006.

Chief financial officers and heads of human resources departments were interviewed for the white paper, to gain a better understanding of their knowledge of various forms of pension risk transfer management and techniques.

“While there is an accelerating rate of acceptance for adding lump sum payout provisions to pension plans, through this research, we have learned that many plan sponsors have yet to explore the variety of financial advantages of the cost-effective and easily-administered risk-transfer strategy,” said Joan Bozek, vice president, Defined Benefit Product, Service and Operation, Prudential Retirement.