For participants leaving a DC plan who would like to purchase a fixed immediate annuity, we can purchase them at group rates through our master contracts. By offering many competitive bids at group rates, as opposed to retail pricing, participants can receive more monthly income.
Brentwood’s annuity search services for defined contribution plans are based on the Department of Labor Interpretive Bulletin 95-1, and its guidelines on how to purchase the “safest available” insurer. Brentwood helps plan sponsors with their fiduciary obligation to participants by providing due diligence as to whether an insurer qualifies as such.
Relative Value Quotes
Many plans require a relative value of a participant’s lump sum when they withdraw from the plan. Brentwood satisfies this requirement by getting an annuity quote that covers all annuity options in the plan.
Often DB plans will offer lump sums during plan terminations and are left with just a few retirees who chose the annuity option. If the premium for those annuitants doesn’t qualify for a group annuity contract we can purchase individual annuities for these participants using group rates through our master contracts. By offering many competitive bids at group rates, as opposed to retail pricing, plan sponsors can save money on the premium.
Our search services for these annuities are based on the Department of Labor Interpretive Bulletin 95-1 and our own internal analysis.
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