Pension Risk Transfer

pension risk consultants

Making the annuity purchase process simple and transparent.

Agilis consultants remain dedicated to making the annuity purchase process simple and transparent for pension plan sponsors and their advisors. When we combine the thinking and experience of our actuarial and investment professionals, you benefit through our thorough understanding of the insurer marketplace and all aspects of pension plan management. Our team of seasoned consultants tackles complex business challenges using data and deep-rooted expertise. Our consultants’ insights provide access to optimal pricing that is routinely below the accounting liability for in-pay benefits.

We can also help select the insurance provider for your annuity purchase.

Pension Risk Transfer Consulting Services

Understanding Pension Risk Transfer with Agilis
Transferring risk is an intricate process requiring extensive knowledge, strategy, and foresight. For pension plan sponsors, understanding and managing these risks is paramount. At Agilis, our consulting experts are dedicated to making this process clear-cut and transparent.

What is Risk Transfer in Pension Plans?
In relation to pension plans, risk transfer involves mitigating the long-term financial obligations and potential uncertainties associated with pension benefits. The primary aim of pension risk transfer is to secure the interests of plan participants while ensuring the financial sustainability of the sponsor. This is achieved through several strategies, with annuity purchases being one of the most prominent.

How Does Agilis Approach Risk Transfer?
Our approach at Agilis is comprehensive. By converging the skills of our actuarial and investment experts, clients gain an unparalleled perspective into the insurer marketplace and the intricacies of pension plan management. This combination of expertise ensures actionable insights for informed decision-making. Our consultants, backed by years of experience, delve deep into data and leverage their profound knowledge to address multifaceted business challenges.

The outcomes?
Our consultants offer thoughtful insights that unlock optimal pricing strategies. Additionally, our consulting team stands ready to assist you in selecting a suitable insurance provider for your annuity purchase, ensuring alignment with your objectives and the interests of your pension plan participants.

Benefits of Pension Risk Transfer with Agilis

While pension plans were historically lauded as employee incentives, they can sometimes become financial burdens. These liabilities, especially in fluctuating economic climates, can be unpredictable and challenging to manage. Transferring the risk through Agilis provides several benefits:

  1. Mitigation of External Factors: Tackle the unpredictability of fluctuating interest rates.
  2. Stabilized Earnings: Reduce potential volatility in earnings due to pension liabilities.
  3. Participant Protection: Ensure security against longevity risks.
  4. Investment Assurance: Safeguard against fluctuating investment returns.
  5. Operational Efficiency: Cut down administrative tasks and related expenses.

Pension Risk Transfer Strategies with Agilis

While there are multiple ways to transfer risk, the two main strategies include:

  1. Lump Sum Settlement: Offer pension plan participants a one-time, upfront payment, removing the obligation of future benefits.
  2. Annuity Purchase: Transfer the obligation of providing future benefits to a reliable annuity provider.

Each strategy is suited to different circumstances, and our consultants excel in discerning which approach aligns best with your specific situation.

Standard Pension Plan Risk Transfer Consulting Services:

  • Independent Expert Due Diligence – We provide robust and proprietary 95-1 analysis. We sign on as a co-fiduciary alongside the pension plan’s fiduciaries in recommending the safest available annuity provider.
  • Annuity Placement Consulting – Annuity providers highly regard our consistent and transparent process. Our reputation maximizes the number of bidders, increasing competition and ensuring you get the best price possible.

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