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Limit on number of insurers?


Guest kjk

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Posted

In the context of a defined benefit plan termination, is there any guidance regarding how many insurers can be identified in the notice to participants regarding annuity information? We have the possible insurers (that will issue annuity contracts) narrowed to six, is that too many?

Posted

I am not aware of a specific limit. IMO, six is not too many IF you reasonably expect that all six could be competitive and be utilized. My experience is to use two, and to include a "catch-all" statement something like "if another insurer is chosen, you will be notified."

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.

Posted

Thanks, PAX, that is helpful information.

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