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Prudential Research & Perspectives Our original research and thought leadership provide vital insights into important issues for our clients, financial professionals, policymakers, and the general public.

Preparing for Pension Risk Transfer

Interest in pension risk transfer continues to intensify among corporate sponsors of U.S. defined benefit (DB) plans as they look for ways to reduce both balance sheet liabilities and funded status volatility. Against the backdrop of new mortality assumptions that will increase DB plan liabilities, as well as increasing PBGC premiums, the market for buy-out solutions is rapidly developing.

Prudential’s paper, “Preparing for Pension Risk Transfer” (PDF), outlines the six key areas that factor into a transfer of pension plan obligations to an insurer:

  • Liabilities
  • Assets
  • Pricing
  • Transaction Structure and Legal Considerations
  • Administration
  • Communication

To learn more about Prudential’s pension risk transfer and other defined benefit liability de-risking strategies, click here.