The year 2021 saw $38B of pension liabilities transfer from the defined benefit (DB) plans to insurers1 , a record pension risk transfer volume, with plan sponsors completing over 430 risk-transfer transactions, covering both full plan terminations and cost-saving employee lift-outs.
There were three key drivers of this activity that we expect to see continue in 2022 and beyond:
Changes in markets and the regulatory environment underscore the importance of getting these transactions done correctly. Plan sponsors should consider working with a process-driven advisor who can not only assist in anticipating and responding to these changes from a governance perspective, but who also can help ensure that your population data and funded status are truly transaction-ready.
For a more detailed discussion of pension risk transfer considerations for your pension plan, download our most recent plan sponsor brief on Pension Risk Transfer Market 2022.
1 Mercer Quarterly Insurer Pension Risk Transfer Sales Survey and LIMRA annual market volume reports 12/31/21
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