According to MetLife, the pension risk transfer (PRT) agreement involves pension obligations of $6 billion.
Tag: pension risk transfer
Corporate plans are winding down as public plans are strengthening themselves for the long run.
Aon shows only 6% of U.S. corporate DB plan obligations have actually been settled since 2012.
As part of the analysis of pension investments, the PensionSmart Analysis tool can examine different investment “glide path” options to help sponsors achieve specific goals related to funding and liability matching.
“Companies feel that the time is right to reduce or eliminate their pension funding shortfalls.” says Matt McDaniel, partner, Mercer.
The most common preparatory steps taken include an evaluation of the financial impact of a pension risk transfer; discussions with stakeholders; data review/cleanup; and, exploration of the PRT solutions.