tuni88 Posted October 8, 2015 Share Posted October 8, 2015 Not sure this is the right board to post this question, but would appreciate it if someone could provide the names of 4 or 5 insurance companies who might be interested in selling us annuities for our current DB plan retirees. Is it safe to assume that the giant insurance companies would not be interested in what is probably a $2 to $3 million deal? Link to comment Share on other sites More sharing options...
Effen Posted October 8, 2015 Share Posted October 8, 2015 Metlife, Pacific Life, Mutual of Omaha, MassMutual and Prudential are generally the main players. You should be able to google each and find out who to contact for single premium annuities. If you have trouble, I can give you some contacts off line. I am sure at least a few of these would quote on something of that size. Generally, getting them to quote on a retiree only group is fairly easy. Getting them to quote on anything with deferred annuities is virtually impossible. Assuming you are not an insurance broker, just make it clear that you are just assisting the sponsor with the purchase. There should be no problem with that arrangement, in fact, I have heard they often prefer it. Alternatively, you can contact Brentwood Asset Advisers or Qualified Annuity Providers and let them handle it - but they will take a nice slice. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
Effen Posted May 30, 2016 Share Posted May 30, 2016 Circling back on this, we are terminating a cash balance plan and we need to buy some annuities for a few non-responders and a few who chose to defer. Does anyone have know of any insurance companies willing to write these contracts? So far, we only have one company willing to bid on the cash balance piece. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
My 2 cents Posted May 31, 2016 Share Posted May 31, 2016 Have you tried working with one of the annuity search firms, instead of trying to find an insurer yourself? Always check with your actuary first! Link to comment Share on other sites More sharing options...
david rigby Posted May 31, 2016 Share Posted May 31, 2016 I am aware of one deferred annuity purchase. I believe the carrier was Mutual of Omaha. No one wants to bid on the "non-responders". I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
My 2 cents Posted May 31, 2016 Share Posted May 31, 2016 It should depend on the reason for the non-response: 1. If the person's whereabouts are known and the benefit is worth more than $5,000, if no response can be obtained an annuity must be purchased. Have all efforts been made to coax a response from the person? 2. If the person's whereabouts are not known, turn them over to the PBGC missing participants program. One can buy deferred annuities if one must by going through an insurer's individual annuity product. So it costs a bit more. Too bad. A plan administrator's gotta do what a plan administrator's gotta do. Always check with your actuary first! Link to comment Share on other sites More sharing options...
Effen Posted May 31, 2016 Share Posted May 31, 2016 Everyone's whereabouts are known. Some just chose not to respond. We may need to go to the brokers if we can't find any bidders, but the client was hoping to avoid that if they could. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
chc93 Posted May 31, 2016 Share Posted May 31, 2016 Have a co-worker friend call the participant. That has been working for us. I heard a suggestion to arrange to meet the participant to get the distribution forms signed. Link to comment Share on other sites More sharing options...
Effen Posted June 1, 2016 Share Posted June 1, 2016 We have talked to all of them. They either don't know where their spouse is, or their spouse refuses to sign, or they are happy with the deferred annuity. We even had one who forged his spousal consent and found a notary willing to commit fraud. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice. Link to comment Share on other sites More sharing options...
chc93 Posted June 1, 2016 Share Posted June 1, 2016 Sounds like you're stuck with purchasing the annuities. And wow... fraudulent notary? Link to comment Share on other sites More sharing options...
My 2 cents Posted June 1, 2016 Share Posted June 1, 2016 Sounds like you're stuck with purchasing the annuities. And wow... fraudulent notary? What do they get paid to commit fraud like that, $5? Easily corrupted! Or are we talking about 25% of the lump sum they helped the participant obtain? Always check with your actuary first! Link to comment Share on other sites More sharing options...
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