Defined terms for the annuity market and lifetime income landscape.
Pension risk transfer is the transaction in which a defined benefit plan sponsor purchases a group annuity contract from an insurance company to satisfy pension obligations to plan participants, transferring the ongoing liability from the sponsor's balance sheet to the insurer's.
A pension-linked emergency savings account is a workplace savings vehicle authorized by SECURE 2.0 that lets non-highly-compensated employees contribute after-tax dollars, up to a $2,500 cap, into a Roth-treated account alongside a defined contribution plan for use on unexpected expenses.
