We understand the risks associated with pension plan liabilities and how they can affect your organization’s balance sheet, cash flow, and income statement. And more and more, we’re noticing that these liabilities are becoming harder for companies to manage in today’s market and regulatory environment. That’s why organizations like yours are taking concrete steps to mitigate the risks associated with their pension liabilities.
Your company can mitigate pension plan risk through a variety of strategies, including:
- Traditional asset allocation
- Partial risk transfers
- Full closeouts
Growing interest in annuity buyouts
Because of their favorable low risk and costs, interest in annuity buyouts has increased. In an annuity buyout, your company would purchase a group annuity contract from us, transferring some or all of its defined benefit plan’s obligations and related risks to the issuing MetLife insurance company.1 You would retain the plan design features and benefits that your participants are vested in.