Prudential's Portfolio Protected Buy-Out
Designed for sponsors of well-funded plans who seek to settle liabilities and diminish plan volatility, Portfolio Protected Buy-Out is a separate account annuity that combines the strength of Prudential's guarantee with an insulated asset portfolio.
Prudential's Portfolio Protected Buy-Out is designed to accomplish several key objectives for plan sponsors:
- Fully transfer risk, including investment, longevity and benefit-option risk;
- Completely remove administrative, actuarial and investment management expenses;
- Eliminate Pension Benefit Guaranty Corporation (PBGC) premiums for participants whose benefits are fully guaranteed;
- Trigger settlement accounting, removing pension liabilities from the sponsor's balance sheet; and
- Provide an enhanced level of transaction security.