Over the last several years, many plan sponsors have focused on managing the risk associated with their pension plan. Different approaches have been taken, but one approach that is often part of the available options is the use of annuities. The presenters provide an update on the annuity market based on activity over the last few years. While some background information will be covered, participants are assumed to have some familiarity with the subject. In particular, the presenters will focus on:

1. How the annuity market pricing has changed compared to the liability that plan sponsors see on an on-going basis. Dynamics impacting this comparison include the convergence of the new SOA pension mortality tables and the mortality tables used in annuity pricing and how economic liability has been affected by legislative changes such as increased PBGC premiums.
2. How large pension programs have shaped the insurance environment for large and small plans—while current insurance market capacity exists—the level of interest in a particular situation is increasingly impacted by a number of factors that affect the attractiveness of the plan. These factors include: what, if any, lump sum choices may have been previously offered, the demographics of the population and the size of the transaction?
3. How the market is maturing with more choices in what insurance products are used and how they are used to meet the sponsor and fiduciary needs. Additionally, more parties are involved than the past, and this has resulted in a need for even better governance procedures to effectively execute the transaction.

Speakers