BALTIMORE, March 3, 2020 /PRNewswire/ — Transamerica pronounces the supply of a customized secure worth separate account product developed particularly for 403(b) retirement plans. The Transamerica Capital Preservation Possibility is a bunch annuity contract issued by Transamerica Life Insurance coverage Firm.
Not like most normal account or pooled separate account secure worth merchandise obtainable to 403(b) retirement plans, Transamerica’s new secure worth resolution affords transparency and adaptability relating to its crediting fee, expense ratio, and underlying separate account mandate.
- The payment for the Transamerica Capital Preservation Possibility relies on an expense ratio that’s explicitly acknowledged.
- Crediting charges are calculated yearly utilizing a contractually specified crediting fee method. Plans that implement this selection by the top of the second quarter of 2020 are assured a minimal crediting fee of 1 p.c for the lifetime of the contract.
“Transamerica is happy to supply this revolutionary secure worth resolution to employers with 403(b) retirement plans for his or her staff,” mentioned Blake Bostwick, Chief Govt Officer, Office Options at Transamerica. “With the Transamerica Capital Preservation Possibility, plan sponsors can depend on contract options together with a clear crediting fee method, an array of best-in-class underlying fixed-income managers, and contract termination provisions that enable plan sponsors to take a market worth acquire over the contract stability. These are options that 403(b) retirement plan sponsors admire.”
The Transamerica Capital Preservation Possibility is out there on an investment-only foundation. The Transamerica Capital Preservation Possibility is out there in all states besides New York, Minnesota, and California. Minimal investments begin at $40 million for 403(b) retirement plans, though Transamerica could think about smaller quantities.
“With Transamerica’s expertise in recordkeeping large-market 403(b) plans, and expertise as a number one issuer of artificial assured funding contracts, we created a secure worth product that meets the wants of 403(b) retirement plan purchasers and their trusted advisors,” mentioned Kent Callahan, Senior Managing Director of Office Distribution and Head of Consumer Engagement at Transamerica. “We hear carefully to the requests of our plan sponsor purchasers, and the introduction of this new funding alternative is proof of our dedication to assembly the particular wants of not-for-profit organizations as they assist their staff plan for retirement.”
With a historical past that dates again greater than 100 years, Transamerica is acknowledged as a number one supplier of life insurance coverage, retirement and funding options, serving thousands and thousands of shoppers all through the US. Recognizing the need of well being and wellness throughout peak working life, Transamerica’s devoted professionals work to assist individuals take the steps essential to dwell higher immediately to allow them to fear much less about tomorrow. Transamerica serves practically each buyer phase, offering a broad vary of high quality life insurance coverage and funding merchandise, particular person and group pension plans, in addition to asset administration providers. In 2019, Transamerica fulfilled its guarantees to clients, paying greater than $50 billion in insurance coverage, retirement, and annuity claims and advantages, together with return of annuity premiums paid by the shopper. Transamerica’s company headquarters is situated in Baltimore, Maryland, with different main operations in Cedar Rapids, Iowa. Transamerica is a part of the Aegon group of corporations. Based mostly in the Netherlands, Aegon is without doubt one of the world’s largest suppliers of life insurance coverage, pension options and asset administration merchandise, working in additional than 20 markets worldwide. For the total 12 months of 2019, Aegon managed over $1 trillion in income producing investments. For extra info, please go to www.transamerica.com.