Prudential partners with ICMA-RC to offer guaranteed retirement income
NEWARK, N.J. – Prudential Retirement, a business of Prudential Financial, Inc. (NYSE: PRU), and ICMA Retirement Corporation (ICMA-RC) announced today they have entered into an agreement through which ICMA-RC will make a guaranteed retirement-income solution available to more than 8,000 retirement plans, covering more than 900,000 public-sector employees.
ICMA-RC is an independent, not-for-profit financial-services organization that provides retirement products and services. As a result of this agreement, ICMA-RC will introduce the “VantageTrust Retirement IncomeAdvantage Fund,” which will be managed by ICMA-RC and will feature Prudential IncomeFlex®, a market-leading, in-plan guaranteed retirement-income product.
“We are very proud of the fact that a leading retirement-plan provider like ICMA-RC has not only recognized the importance of in-plan income solutions, they have also recognized the value of working with Prudential, the retirement-income leader,” said Christine C. Marcks, president, Prudential Retirement. “By investing in this fund, participants in an ICMA-RC retirement plan can ultimately benefit from a level of lifetime income that cannot be outlived, will not decrease if the stock market declines, and may, in fact, increase if the market performs well,” she added.
According to Joan McCallen, president and CEO of ICMA-RC, “Our goal was to identify sound solutions for our public-sector employees as they start to think about retirement income, and we believe that Prudential Retirement is the right partner to help us.”
“Ensuring that public-sector employees have the retirement-saving solutions they need to provide dependable income throughout their retirement is a priority for us as we help our participants build retirement security,” McCallen added.
Under the terms of the agreement, ICMA-RC will introduce this new in-plan option to its existing clients. The fund will be a balanced portfolio investing in low-cost stock index and bond funds and is designed primarily for participants within 10 to 15 years of retirement. The agreement with Prudential provides for guaranteed lifetime income. Guarantees are based on the claims-paying ability of the issuing company.
The importance of integrating a guaranteed lifetime-income solution into qualified retirement programs was recently driven home by the U.S. Department of Labor and the Department of the Treasury. Working together, they issued a formal “Request for Information” (RFI) seeking ways to enhance the retirement security of participants in employer-sponsored retirement programs by facilitating access to, and use of, lifetime-income solutions or other arrangements to provide a stream of guaranteed lifetime income after retirement. Prudential Retirement participated in the RFI process.
(Source: Prudential)
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