Pension plans can expose sponsors to multiple risks. External factors such as fluctuations in the financial markets, demographic shifts and changing legal and regulatory requirements can lead to unexpected cash flow needs, balance sheet volatility and increased administrative responsibilities. MetLife can help craft a solution that is designed to reduce overall risk and enables plan sponsors to focus more on core business needs.

Pension Liability Risk Transfer Offers:

• Operational Benefits
  • Removes certain liabilities from the balance sheet, which may result in more favorable reviews by credit and rating agencies
  • Helps provide financial flexibility to accelerate or extend the timing of future payments
• Volatility Management
  • Helps avoid funding shortfalls caused by changing market conditions
  • Helps reduce vulnerability to and uncertainty from changes in accounting standards
• Cost Efficiency
  • Helps minimize or eliminates PBGC premiums
  • May provide tax benefits
• Regulatory Compliance
  • May help facilitate compliance with regulatory requirements (e.g. ERISA)

Pension Closeouts

At MetLife, we have strategies to enable plan sponsors to irrevocably transfer ("closeout") pension plan liabilities using annuities as well as other risk transfer solutions.

We can:

• Structure standard participating and non-participating closeouts
• Develop a strategy for full closeout of a plan over time
• Close out a portion of the plan

Underfunded Pension Plans

We can help you reduce or eliminate the problems associated with an underfunded pension plan by assisting in bringing the plan to funded status or by enabling immediate transfer of plan liabilities.

Pension Plan Volatility

We help employers finance and transfer risks emanating from pension plans. Using innovative combinations of insurance and investment contracts, our solutions are tailored to help our clients achieve their objectives.

Terminal Funding

We help employers transfer their liability under a closed plan to MetLife. MetLife assists employers with participants "in payout status" or "ready to go into payment" status in their pension plan by assuming the liability where the payout is truly deferred. We then set up a Terminal Funding Group Annuity Contract with the employee. MetLife guarantees¹ to make fixed monthly payments to the annuitant for life. Beneficiary options can be tailored to each client's needs, based upon the type of annuity selected.

We help institutions finance and transfer risks emanating from pension plans. Using innovative combinations of insurance and investment contracts, our solutions are tailored to help our clients' achieve their objectives.

At MetLife, we design and implement flexible, proactive solutions. We welcome the opportunity to partner with you to explore the challenges you face. Please call 1-888-217-1858 to schedule a stable value, risk transfer or enhanced indexing meeting.