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MetLife Retirement & Income Solutions
How Companies Are Protecting Pension Benefits Amid a Challenging Economic Environment
MetLife has been tracking pension de-risking trends and developments for many years. For our 2022 Pension Risk Transfer Poll, MetLife commissioned a survey of 251 defined benefit plan sponsors to assess the impact of market forces on their de-risking plans. This Poll:
Through a pension risk transfer, which shifts some or all risk to an insurer, a plan sponsor can reduce a plan’s volatility, improve its funded status and restore stability to the company’s balance sheet – all while ensuring that benefits payments are paid, and the plan sponsor’s promise is being fulfilled.
Today, nearly nine in 10 plan sponsors say they are likely to consider a PRT option from an insurance company in the next five years. With all other factors being equal, nearly all plan sponsors prefer to work with an insurer who has significant, long-term experience.
Want more insights from the 2022 PRT Poll Report?
Pension risk transfer industry sales in 2021 were a record-setting $38 billion. When surveyed for MetLife’s 2022 PRT Poll, 64% of plan sponsors predict the number of large PRT transactions will likely increase in the next five years.
92% of plan sponsors said continued rising interest rates would make them more likely to move forward with their de-risking plans.
What is very clear from MetLife’s latest PRT Poll findings is that pension de-risking is top of mind for many DB plan sponsors, and the industry’s high level of activity is expected to continue for the foreseeable future. For many companies, now may be an opportune time to transfer some or all of their pension obligations to an insurer – ensuring that their pension promises to their retirees will be kept.