A “Carve Out” Strategy
to Help Employers Reduce DB Plan Liability

Many employers continue to have concerns about their defined benefit plan liabilities and how to fully fund their plan by the 2012 deadline enacted by the 2006 Pension Protection Act. As that deadline creeps ever closer, a practical strategy plan sponsors may want to consider a transfer — or carve out — of certain liabilities and costs associated with their plans.

That strategy is discussed in a recent Employee Benefit News article. Key highlights include:

  • A plan sponsor can transfer the liabilities and costs of a particular subset of participants – retirees, for example – to an insurance company by purchasing an annuity.
  • The insurance company, whose core business is managing risk and benefit administration, assumes responsibility for future benefit payments
  • The carve out removes unwanted pension liabilities from the plan sponsor’s balance sheet, reduces the volatility of plan earnings and funding levels, and minimizes the impact of future regulatory changes

An Ideal Solution
United of Omaha’s Pension Guard offers an excellent solution for clients who want to:

  • Terminate an existing defined benefit plan; or
  • Transfer all or a portion of their benefit payment obligations for certain subsets of participants

For more information, contact me directly:

Kerry Roach, Regional Sales Director
Cell: (970) 331-1079
Office: (888) 543-6998
Fax: (402) 351-2176
E-mail: Kerry.Roach@mutualofomaha.com

Jared Baker, Internal Wholesaler
Office: (402) 351-2792
Fax: (402) 351-2176
E-mail: Jared.Baker@mutualofomaha.com

Get Retirement Right
Corporate Headquarters
Retirement Marketing Solutions, Inc.
9140 W. Dodge Rd., Suite 380
Omaha, NE 68114
National Sales Office
Retirement Marketing Solutions
5475 Rings Rd., Suite 110
Dublin, OH 43017
Retirement Marketing Solutions, Inc. (RMS) is a national wholesaling organization that specializes in retirement products. With seasoned retirement experts located across the U.S., RMS provides sales support, proposal generation, education, enrollment support and ongoing services to independent brokers and advisors. RMS works diligently to develop relationships with select providers to secure quality products and competitive pricing arrangements on behalf of those who sell the products.

A Mutual of Omaha Company

United of Omaha Life Insurance Company and Companion Life Insurance Company are affiliate companies of Mutual of Omaha Insurance Company. United of Omaha Life Insurance Company is licensed in all states except New York. Companion Life Insurance Company is licensed only in New York.

United of Omaha Life Insurance Company accepts full responsibility for all contractual obligations under its group annuity contracts. In New York, group annuity contracts are underwritten by Companion Life Insurance Company, Hauppauge NY. Companion Life Insurance Company accepts full responsibility for all contractual obligations under its group annuity contracts.

No financial liability will be incurred by the parent or affiliate companies for business transacted by United of Omaha Life Insurance Company or Companion Life Insurance Company. Products not available in all states.

For producer use only; not intended for the general public. If you no longer wish to receive information,
please click here to send a blank e-mail and unsubscribe from this list.