What risks does the insurer bear for providing the guarantees?
By declaring a rate that can never fall below the guaranteed minimum interest rate in advance, the insurance company assumes certain risks.
How does an insurer take on these risks?
Transferring risk from policyholders to the insurance company is at the very heart of what insurance companies do every day.
What are the differences between general accounts and separate accounts?
Guaranteed insurance accounts can be structured in two ways: general accounts or separate accounts.
How can a plan get comfortable with a single guarantor behind a guaranteed insurance account?
Aside from the fact that any claims related to guaranteed insurance accounts are pari-passu with policyholders and ahead of general creditors, insurance companies are highly regulated with rigorous risk management and oversight processes.
What is a stable value guaranteed insurance account?
Guaranteed insurance accounts are stable value funds that are offered to defined contribution plans such as 401(k), 401(a), 457, 403(b) and some 529 tuition assistance plans, generally managed entirely and guaranteed directly by a single insurance company.
What are some other aspects of guaranteed insurance accounts that a plan sponsor should consider?
Consider asset ownership, single guarantors, disclosure requirements, fees/spread, and exit terms.
What Makes Stable Value Attractive
Plan sponsors have a unique opportunity to offer a stable value product which is specifically designed to meet the needs of their plan participants and can only be offered inside a tax qualified plan.
Policy Expert Sees New Opportunity for Retirement-Friendly Legislation
When Congress passed the $1.9 trillion American Rescue Plan in March 2021, it took another step toward helping the country recover from last year’s pandemic-related economic downturn.
Job Posting: Product Management Analyst at Empower Retirement
Great-West Investments is seeking to hire an Product Management Analyst to provide ongoing day-to-day product management support for this well-established and growing business line.
