Prudential's Portfolio Protected Buy-In
Designed for sponsors of under-funded plans who seek to transfer risk without triggering a settlement, Prudential's Portfolio Protected Buy-In is one of the first buy-in solutions for U.S. pension plans.
This innovation allows plan sponsors to purchase a bulk annuity and hold it as a liability-matching asset of the plan. This means pension plans can transfer risk today without the charges that naturally arise with the settlement of plan liabilities.
This strategy offers several additional advantages for under-funded plan sponsors, including:
- Maintaining funded status;
- Holding contributions steady; and
- Minimizing accounting and funding volatility.
A key feature of Prudential's Portfolio Protected Buy-In is convertibility. Our Buy-In contract can be converted to Prudential's Portfolio Protected Buy-Out, enabling plan sponsors to take a phased approach to risk reduction on the schedule of their choice.