Friday, January 15, 2021
  • About
  • Advertise
  • Careers
  • Contact
Pension Changes
  • Home
  • Government Policy
  • Pension Changes
  • Pension Information
  • Pension Rights
  • Retirement Pension
No Result
View All Result
Pension Changes
Home Retirement Pension

Innovative pension risk transfer approach offers Prudential clients a new way to wind down plans

August 17, 2020
in Retirement Pension
Innovative pension risk transfer approach offers Prudential clients a new way to wind down plans
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

NEWARK, N.J.–(BUSINESS WIRE)–Prudential Retirement, a business unit of Prudential Financial, Inc. (NYSE: PRU), has completed the firm’s fourth and final pension de-risking transaction with Boise, Idaho-based wood products manufacturer and building materials distributor Boise Cascade Company (NYSE: BCC).

“The final transaction in our three-year engagement with Boise Cascade is significant because it represents the first time a plan sponsor has been able to guarantee the cost of a plan termination early in the lengthy termination process by transferring all of the risks to an insurer,” Peggy McDonald, senior vice president and actuary, Prudential Retirement’s Investment & Pension Solutions, said.

Prior to this final transaction, Boise Cascade had transferred U.S. pension plan assets to Prudential in three phases: $152 million in April 2018; $125 million in August 2018; and $20 million in September 2019.

The transaction used one of three structures for plan termination examined by McDonald and the Prudential Retirement Pension Risk Transfer team, to be detailed in an upcoming white paper “Unlocking Value in Pension Plan Terminations.” In the paper, McDonald underscores how plan sponsors need a new blueprint to reduce risk during the plan termination process.

“Terminating a pension plan is risky business and, up until now, plan sponsors haven’t been able to calculate the actual cost of unwinding a plan until the end of the termination process, which can take a year or more,” McDonald said. “This approach provided Boise Cascade with cost certainty early in the process by securing a buy-in contract under which Prudential assumes the lump sum election rate risk.”

Alex Hyten, who on June 2 was named head of Structured Settlements for Prudential Retirement, led the transaction.

“The long-term partnership between Boise Cascade and Prudential has allowed Boise to successfully wind down their plan in a manner and a time frame that was beneficial to them,” Hyten said. “We are happy to develop solutions that help clients, like Boise Cascade, achieve their pension de-risking goals and secure those promises with a financially strong and experienced company like Prudential.”

“Boise Cascade has been fortunate to partner with a market-leading firm like Prudential on our multi-year de-risking journey,” Wayne Rancourt, executive vice president, chief financial officer and treasurer, Boise Cascade Company, said. “When we began thinking about transferring our legacy pension obligations, we knew Prudential would be able to provide great service and financial protection to our plan participants. Their willingness to help structure this last buy-in transaction has allowed us to eliminate the future funding uncertainties and focus on running our core businesses. We couldn’t be happier with the result.”

To request a copy of Prudential’s upcoming white paper, “Unlocking Value in Pension Plan Terminations,” contact Peter Patrician.

About Prudential Retirement

Prudential Retirement delivers retirement plan solutions for public, private, and nonprofit organizations. Services include defined contribution, defined benefit and nonqualified deferred compensation record keeping, administrative services, investment management, comprehensive employee education and communications, and trustee services, as well as a variety of products and strategies, including institutional investment and income products, pension risk transfer solutions and structured settlement services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of 4.6 million participants and annuitants. Prudential Retirement has $497.6 billion in retirement account values as of June 30, 2020. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates.

About Prudential Financial

Prudential Financial, Inc. (NYSE: PRU), a financial wellness leader and premier active global investment manager with more than $1.5 trillion in assets under management as of June 30, 2020, has operations in the United States, Asia, Europe and Latin America. Prudential’s diverse and talented employees help to make lives better by creating financial opportunity for more people. Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit news.prudential.com.

About Boise Cascade

Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit bc.com.

1039287-00001-00

— to www.businesswire.com

Related posts

Caldwell’s Top Aide Lands City Council Gig To Cash In On Retirement Benefits

Caldwell’s Top Aide Lands City Council Gig To Cash In On Retirement Benefits

January 7, 2021
You could be eligible for a Carer’s Allowance if you regularly take care of someone – how to check

You could be eligible for a Carer’s Allowance if you regularly take care of someone – how to check

January 7, 2021
Previous Post

259 retirees get over N1bn benefits in Lagos – Punch Newspapers

Next Post

18 Organizations Make Joint Comment On Fiduciary Rule Replacement – InsuranceNewsNet

Next Post
18 Organizations Make Joint Comment On Fiduciary Rule Replacement – InsuranceNewsNet

18 Organizations Make Joint Comment On Fiduciary Rule Replacement – InsuranceNewsNet

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Experts are positive about new Dutch pension arrangements | News

Experts are positive about new Dutch pension arrangements | News

7 months ago
Unfunded liability drops as committee recommends lower pension rates

Unfunded liability drops as committee recommends lower pension rates

6 months ago
How much state pension you’ll get from April 2020 – all the changes coming

How much state pension you’ll get from April 2020 – all the changes coming

10 months ago
State pension error sees man claim £140,000 lump sum after deferring payment | Personal Finance | Finance

State pension error sees man claim £140,000 lump sum after deferring payment | Personal Finance | Finance

9 months ago

FOLLOW US

  • 79 Followers
  • 27.6k Followers
  • 40.7k Subscribers

BROWSE BY CATEGORIES

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

BROWSE BY TOPICS

2021 2021 Pensions auto-enrolment age 18 auto enrolment pension contributions 2021/22 auto enrolment rates 2020/21 auto enrolment rates 2021/22 cashing in pension at 55 cashing in pension calculator cashing in small pension pots CCP retirement check my state pension Disabled pensions drawdown employer pension contributions 2021/22 government policy examples uk list of government policies uk minimum pension contributions 2021 minimum pension contributions 2022 new state pension Pension age pension issues pension ombudsman pension plan pension regulator Pensions Advisory Service Pensions Brexit pension scheme uk Pensions outlook retirement 2 million scams scheme funding Single mothers pensions State Pension State Pension age state pension changes state pension forecast State Pensions State triple lock taking pension at 55 the pensions regulator Therese Coffey uk pension age UK State Pension uk state pension age what is government policy uk

POPULAR NEWS

  • Multiemployer pension reform not happening this year

    Multiemployer pension reform not happening this year

    5 shares
    Share 0 Tweet 0
  • Exit payment cap: Implications for the LGPS

    0 shares
    Share 0 Tweet 0
  • Public Service Pensions Update | October 2020

    0 shares
    Share 0 Tweet 0
  • NEST: More than a pension | Country Report

    0 shares
    Share 0 Tweet 0
  • Builders were not self-employed, rules employment tribunal

    0 shares
    Share 0 Tweet 0

Follow us on social media:

Recent News

  • Law, Practice and Precedents (8th Edition)
  • State pension payments can be received while working – will more tax need to be paid?
  • What is the average UK retirement income?

Category

  • Government Pension Policy
  • Pension Changes
  • Pension Information
  • Pension Policy
  • Pension Rights
  • Retirement Pension
  • Uncategorized

Recent News

Law, Practice and Precedents (8th Edition)

Law, Practice and Precedents (8th Edition)

January 15, 2021

State pension payments can be received while working – will more tax need to be paid?

January 15, 2021
  • About
  • Advertise
  • Careers
  • Contact

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.

No Result
View All Result
  • Home

© 2020 Please contact us on partnership@pensionchanges.co.uk if you would like to reach our audience.