Pension Risk
Let us show you what steps your company can take to overcome the business challenges of mitigating your pension risk.
Current Pension Risk Landscape
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.
De-Risking Strategies That are Available to you
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 your company's 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.
Preparing to De-Risk
Quantify & Evaluate
Examine all current plan costs and the financial impact that a risk reduction strategy may have on funded status, earnings volatility, and ongoing expenses.
Understand
Interpret the plan's economic liability — or the cost to settle the liability — and the accounting impacts of such a strategy.
Obtain
Secure the necessary internal approvals for action.
Monitor
Keep an eye on market returns and interest rates to identify the right time to implement your risk reduction strategy.
Quick Links
Roadmap to Transferring Pension Benefits
Over a Century of Pension Risk Transfers
Since 1921, MetLife has worked with companies on their de-risking journey while providing retirees financial security.
Pension Risk Solutions
Pension decisions today will impact many lives for years. See how we can help you decrease plan risk and protect retiree benefits.
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1Group annuity contracts can be issued by Metropolitan Life Insurance Company, 200 Park Ave. NY, NY 10166 or Metropolitan Tower Life Insurance Company, 5601 South 59th St., Lincoln, NE 68516. Like most group annuity contracts, MetLife group annuities contain certain limitations, exclusions and terms for keeping them in force. Ask a MetLife representative for costs and complete details.