The primary source for our retirement income product data is through an independent third party (CANNEX). CANNEX provides data and methodologies that help optimize the selection and allocation of annuity and insurance guarantees in support of retirement programs and practices. www.cannex.com All products and data featured in the Retirement Product Evaluator has been validated by the product provider.
Retirement income product data does not fluctuate on a regular monthly or quarterly basis like traditional investments. In addition, some of the specific items which do change, are specific to each participant, and therefore not something reported at a product level. Due to this, the underlying product details are refreshed as needed and not on a set monthly or quarterly cadence.
Category: Accumulation Phase
- Account Value Growth: Describes how the account value grows based on its investments. In some cases with annuitization offerings, there is no account value
- Account Value Protection - Availability: Describes if the account value is protected in the accumulation phase
- Account Value Protection - Description: Describes how the account value is protected from loss, if applicable
- Accumulation Protection - Benefit Value: Some guaranteed retirement income solutions include a contractual provision to provide accumulation protection in one of two forms, depending upon product structure. The first would be Account Value protection where there is an interest rate guarantee or a guaranteed floor to the rate of return. The second is a Lifetime Income Benefit protection which accumulates over time prior to the start of income. For example, a Benefit Base Value is a separate value from which a guaranteed withdrawal percentage is applied for a lifetime payment. The value of a Benefit Base can grow in alignment with growth in Account Value or it may depend on a separate calculation. However, if the Account Value were to decline, the Benefit Base will not (assuming there are no transfers out prior to income start). Is there protection of the benefit value in the accumulation phase, or can it lose value?
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Annuity Contract Owner - Lists who the annuity owner is during the accumulation phase. For example:
-Annuity is owned by the plan/trustee/Asset Manager
-Annuity contract is issued to the individual - Annuity Contract Owner Description - Describes the annuity contract ownership in more detail
- Description of Solution - During Benefit Accumulation: Detailed description of the income solution in the Accumulation phase. Includes detail about contributions, investments & growth, protection, and employment separation.
- Income Benefit Value Growth: Describes how the income benefit, if applicable, may grow during accumulation
- Liquidity - Ability to Transfer out Availability: Can transfers/withdrawals be taken?
- Liquidity - Restrictions - Description: Describes any additional restrictions placed when transferring funds
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Liquidity- Impact to Income: Describes how the benefit value is impacted when withdrawals are taken:
- Dollar for Dollar
- Proportional
- Liquidation starts with the most recent contribution, then each preceding contribution (LIFO)
- N/A
- Surrender Charges: Are there surrender charges when withdrawals/transfers are made?
- Surrender Charges - Description: Describes how and when Surrender charges are assessed with a withdrawal in accumulation, if applicable
- MVA: Is there MVA when withdrawals/transfers are made?
- MVA - Description: Describes how and when MVA is assessed with a withdrawal in accumulation, if applicable.
Category: Payout Phase
- Account Value Protection- Availability: Detailed description of the income solution in the payout phase. Includes detail about initiating income start, investments & growth, protection, and where assets remain protection, and where assets remain
- Account Value Protection - Description: Describes how the account value is protected from loss during payout, if applicable.
- Additional Contributions- Availability: A contractual provision in some guaranteed retirement income solutions that permits additional contributions during the benefit payout period (after income distribution has commenced). Are additional contributions accepted in the payout phase?
- Additional Contributions- Description: Describes if additional contributions are allowed, and how they may affect the account value and benefit base, if applicable
- Description of Solution - During Benefit Payout: Detailed description of the income solution in the payout phase. Includes detail about initiating income start, investments & growth, protection, and where assets remain
- Income Benefit Value Growth: Describes how the income benefit may grow, if applicable, during payout
- Liquidity - Ability to Transfer Out - Availability: Can transfers/withdrawals be taken?
- Liquidity - Ability to Transfer Out or Take Excess Withdrawals - Description: Describes ability or inability to transfer money out or take excess withdrawals, which portions can be withdrawn, and any restrictions placed
- Longevity Protection- Availability: The protection against the risk of outliving one’s assets provided by guaranteed payments for life from an annuity. Is the payout amount protected against outliving the income?
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Longevity Protection - Description: Describes which part of the payout is protected against outliving the income:
- Yes, in the form of a GLWB
- Some, only with the portion of assets used to purchase a SPIA
- Yes, for the amount that is annuitized
- Payout Adjustments: Guaranteed income payments can either remain flat (i.e., level) over the course of a lifetime or they can change depending upon the design of the lifetime income solution. Some adjustments can be selected as an option by the participant at income start (i.e., an annual fixed percentage increase of the payment) or may increase or decrease due to the performance of the investments or other factors. Describes how the payout may be adjusted in the payout phase, either by the insurer, through additional contributions, or through elected options
- Surrender Charges: Are there surrender charges when withdrawals/transfers are made?
- Surrender Charges - Description: Describes how and when Surrender charges are assessed with a withdrawal in payout, if applicable
- MVA: Is there MVA when withdrawals/transfers are made?
- MVA - Description: Describes how and when MVA is assessed with a withdrawal in payout, if applicable.
Category: Product Summary & Operations
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Accessibility of Solution: Describes how the product can be purchased
- Proprietary and Off-Platform Managed Account
- Managed Account
- Direct Plan Investment Option - Participant Elected
- Direct Plan Investment Option - QDIA
- Direct Plan Investment Option - Dual QDIA
- Indirect Plan Investment Option - Managed Account Allocation
- Personalized Target Date Fund
- Contact Name, Phone, & Email: Manufacturer contact name, phone (optional) & email
- Death Benefit - Some guaranteed retirement income solutions include a death benefit provision to make one or more payments to beneficiaries when an annuity holder passes away. A death benefit provision may apply during the benefit accumulation period (before income distribution), after income distribution has commenced, or both. Death benefit payments may be a lump sum distribution or a contractually defined stream of payments. Description of the death benefit.
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Death Benefit - Beneficiary Settlement Options: Describes the annuity settlement options for beneficiaries:
- Lifetime Income with Guarantee Period
- Cash Refund
- Installment Refund
- Account Value of the TDF
- Lump Sum
- Death Benefit - Spousal Continuation Options: Describes the continuation options available for joint owners after death of primary annuitant
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Death Benefit- Type: Type of death benefit value:
- Account Value
- Return of Premium
- Greater of Accumulation Value, Cash Surrender Value, Cumulative Withdrawal Amount, or Guaranteed Minimum Value
- Explicit Fee Max %: Maximum total explicit fee percentage
- Explicit Fee Min %: Minimum total explicit fee percentage
- Fee Structure (Implicit/Explicit): Describes how the product and benefit fees are structured
- Fees & Expenses - Explicit Description: An explicit fee is one that is disclosed in writing and is directly associated with a given product feature. This can come in a variety of forms such as a fund expense or the expense of a lifetime income feature that is charged against assets. Describes the explicit fees within the offering, and how they are applied during accumulation and payout
- Fees & Expenses - Implicit Description: An implicit fee or expense is a deduction from the rate of return that an insurer targets when setting interest crediting rates. Although not technically a “fee,” a deduction target like this is also called a “spread” which is embedded within a product and is not disclosed. Items included in the target spread may include the amounts to help defray the costs of operating and distributing the product; investing and managing assets to support guarantees; plan and participant servicing (if applicable); or build capital to absorb risks associated with guarantees and to provide an appropriate return on that capital in light of the insurer’s financial strength aspirations. These amounts are typically realized by the insurer as the actual “spread” between the income the insurer receives on the assets supporting the guarantees and the return (interest crediting rate) the investor receives. Although the insurer accounts for a target spread when setting interest crediting rates, there is no guarantee that the insurer will actually achieve the spread it had targeted. Similar to a bank-issued certificate of deposit, this approach to covering expenses is typically found in a deferred fixed rate annuity used during accumulation. Describes the implicit fees within the offering, and how they are applied during accumulation and payout
- Inception Date: Date the product was first offered
- Income Guarantee: Annuitization or Guaranteed Lifetime Withdrawal Benefit (GLWB)
- Insurers & A.M. Best Rating: A forward-looking independent opinion about an insurance company’s financial soundness and ability to pay policies and contractual obligations. Lists the insurers and applicable AM Best Rating
- Last Modified Date: Date the product was last modified
- Manufacturer: Company offering the product
- Middleware Provider: Lists the Middleware Providers
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Plan Segment Targeted: Size of plans targeted by the product:
- Small Market (under $10M)
- Mid Market ($10M-$100M)
- Large Market ($100M - $250M)
- Mega Market ($250M+)
- All Markets
- Unknown
- Plan Type - Availability: Which plan types are available: 401(a), 401(k), 403(b), 457
- Portability- Availability: The ability to transfer a participant’s accrued lifetime income benefit to another recordkeeper or a plan, including an IRA. Is the product designed to be portable to another recordkeeper and/or product?
- Portability - When Participant Separates from Service: Describes what options are available when a participant separates from service
- Portability - When Plan Sponsor Changes Recordkeepers: Describes what options are available when a plan sponsor changes their recordkeeper
- Portability – Options when the Plan Changes Solutions: Describes what options are available when a plan sponsor changes the solution or amends the plan, or if a new recordkeeper cannot support the solution.
- Product Description: Describes the product and guaranteed income offering at a high level
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Product Type: The type of investment product:
- Group Deferred Fixed Rate Annuity (Flexible Premium) (FRA)
- Group Deferred Income Annuity (Flexible Premium) (DIA)
- Group Deferred Variable Annuity (Flexible Premium) (VA)
- Contingent Deferred Annuity (CDA)
- Individual Deferred Fixed Indexed Annuity (Flexible Premium) (FIA)
- Group Deferred Fixed Rate Annuity (Single Premium) (FRA)
- Single Premium Immediate Annuity (SPIA)
- Target Date Fund (TDF)
- Balanced Fund (BF)
- Recordkeepers: Lists the Recordkeepers
- Recordkeeping Support & Middleware Support: Recordkeeping infrastructure provided by a platform provider (defined herein) that is necessary to make a specific retirement income solution available to a plan and its participants. Platform providers typically provide recordkeeping support for a limited number of retirement income solutions providers. Describes in more detail about recordkeeper support and middleware support
- Rollover Option - Availability: The ability of the participant to take a distribution and retain their assets and/or accrued lifetime income benefit within another retirement plan or individual account. Some lifetime income rollover options retain the same solution as available inside the plan while others provide a similar replacement. Are rollovers allowed?
- Rollover Option - Description: Describes in more detail the circumstances where rollovers are allowed
- Solution Name: Name of the Product
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Underwriting of Protections and Guarantees: Describes the number of insurers:
- Single Insurer
- Double Insurer
- Multiple Insurer
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Website: Website for Product materials