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Pension Risk Transfer

A respected leader in pension risk transfer (PRT) for over 35 years, we offer employer’s Single Premium Group Annuity (SPGA) products for:

  • Defined benefit pension plan termination (terminal funding)
  • Settlement of partial benefit liabilities (corporate and union plans, cash-balance plan specialists, and underwriting and administration of unique provisions)

Institutionally-priced group annuity solutions are designed for employers who have decided to exit their pension plan by transferring accrued benefit liabilities and administrative responsibilities to an insurer. Annuity contracts provide a guaranteed, fixed immediate or deferred annuity for each plan member and include participant administration services.

Advantages

  • Eliminates plan risks, including interest rate, investment, longevity, early retirement and volatility 
  • Eliminates plan expenses and ends PBGC premiums, employer contributions, actuarial, consulting and investment management fees, and plan reporting and administration costs 
  • Insurance premium covers all expenses—no recurring contract fees 
  • Includes full-service benefit administration and participant services 
  • Includes tax reporting, annuity calculations and benefit commencement forms for deferred annuitants

We offer clear, well-crafted and expertly underwritten group annuity contracts from $1 million to the billions including buy-in, buy-out, guaranteed separate account and assets in kind transation. Each plan is different and, consequently, each group annuity contract is unique and is based on detailed contract specifications, plan information and annuitant data. 
Call us with questions or for assistance.

Benefits of Pension Risk Transfer

Our Pension Risk Transfer (PRT) team understands that many employers and intermediaries are unfamiliar with single premium group annuity products and pension plan buy-outs, buy-ins and settlements. For pension consultants, actuaries and advisors tasked with an SPGA placement assignment, we’re available for guidance and support:

  • Experienced navigation throughout the course of plan termination, providing meaning and context to group annuity pricing and alternative distribution options
  • Expert collaboration with plan sponsors and their advisors, to help develop a suitable RFP and contract that are consistent and compatible with plan benefits, data and administrative requirements
  • Education for clients and partners to help them better understand the group annuity market and products, the annuity placement process and due diligence requirements, and facilitate contract implementation and participant communications

We pioneered the industry’s first SPGA Contract Installation and Benefit Administration Guide for pension plan terminations and settlements, containing details on financial quality (criteria defined by Department of Labor concerning rules for insurer selection), annuity contract experience and service capabilities, contract installation procedures and data requirements, sample participant correspondence and notifications, and a sample group annuity contract.

We are recognized as a premier SPGA underwriter and administrator of customized contracts. Plan advisors and their clients appreciate our expertise, flexibility and collaborative approach in developing accurate, cost-effective contracts for all sizes and types of defined benefit pension plans, along with unique benefit provisions and special administrative services.

Contact Us

Participant Services 
Emailpensionsadmin@americangeneral.com
Telephone: (800) 842-3068

Richard S. Weiss 
VP, Institutional Markets, Pensions 
EmailRichard.Weiss@aig.com
Telephone: (908) 334-4631