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Pension Risk Transfer

What We Do

NBT Insurance Agency’s Institutional Solutions division provides comprehensive pension de-risking solutions to plan sponsors of defined benefit pension plans. Our mission is to support you through the pension risk transfer process and ensure that participants experience a seamless transition.

We are ready to help you transfer your pension liabilities and benefits with the pension risk transfer program.

Get Started Today!

Evan Walker, MBA, CLU, ChFC
VP, Life Insurance Practice Leader
315-250-3833
ewalker@nbtbank.com

How We Help

Pension risk transfer strategies offer ways to mitigate and, at times, eliminate costly plan and associated risks, helping organizations better manage the costs and efficiency of benefits administration. When you partner with NBT Insurance Agency for pension risk transfer programs we can help reduce or eliminate market risk, interest-rate risk and inflation risk.

What We Offer

Unbiased fee-based services in a zero-commission environment with highly competitive pricing models
Complete RFP creation and management
Written analysis and summaries on all bids throughout the selection process with clear documentation for DOL IB 95-1 compliance

How Your Company Benefits

Manage or eliminate pension risk
Focus on core competencies
Reduce Pension Benefit Guaranty Corporation (PBGC) premiums

To learn more about our Pension Risk Transfer Programs please contact:

Evan Walker | Life Insurance Practice Leader | ewalker@nbtbank.com

Our Process

We understand every employer, plan, and each employee is unique.

Our goal is to help guide you through the entire pension risk transfer process from start to finish. We’ll begin with a deep understanding of your organization and your current plan before implementing and managing the process.

Here is what you can expect when you partner with NBT Insurance Agency:

Review Plan Documents and Develop insurer selection process and criteria

Create RFP document, bid specifications, Review proposals and respond to inquiries

Manage bidding process and Select Insurer

Our Commitment To You

With over 130 years in the insurance industry, NBT Insurance Agency brings a wealth of experience to the table. When it comes to handling your institution’s pension risk transfer de-risking plans, we partner with you by facilitating the provider search process and we communicate with you every step of the way in your journey to a stronger financial position.

We don’t receive any cash or non-cash compensation from any insurer we are evaluating on your behalf, which means we are unbiased in our analysis. As a testimony to our passion for providing you with the best solution, we stand behind our final written recommendations to you by becoming a co-fiduciary in the transaction.

To learn more about our Pension Risk Transfer Programs please contact:

Evan Walker | Life Insurance Practice Leader | ewalker@nbtbank.com

Frequently Asked Questions

Pension Risk Transfer is a transaction that allows a defined benefit plan sponsor to mitigate risk and improve benefit security for plan members by transferring all or a portion of the plan to an insurance company. Regulatory environments, asset performance, and longer expected lifespans can all impact your plan’s — and in turn your organization’s — financials. Through the purchase of a pension risk transfer annuity, you can help remove this volatility from your balance sheet and income statement

De-risking a defined benefit pension plan can occur through a transfer of assets and liabilities to a third party, even if the plan itself is not terminated. Typically, the PRT is handled through the purchase of a single premium group annuity (SPGA) on an institutional basis.

We function as your pension consultant and fee-only annuity placement provider. Because we do not accept commissions or remuneration from any insurer in a PRT placement, we are unbiased in our analysis and approach. We initiate and manage the entire bid process, including all communication with prospective insurers. We then analyze and summarize for you all responses to the bid process to select an annuity provider, and typically we serve as the point of contact between the plan, its representatives (actuary, legal counsel, administrator, fiduciary) and the insurance carriers. When we provide you with our written recommendations, we do so in accordance with DOL IB 95-1 and we stand behind our recommendation by becoming co-fiduciary with plan sponsors in the transaction.

The Department of Labor established a set of criteria (DOL Interpretive Bulletin (IB) 95-1.) to consider when choosing an annuity provider. See chart below for additional information:

Department of Labor Criteria

Quality and diversification of the annuity provider's investment portfolio
Size of the insurer relative to the proposed contract
Level of the insurer's capital and surplus
Lines of business of the annuity provider and other indications of an insurer's exposure to liability
Structure of the annuity contract and guarantees supporting the annuities

Typical Assessment Criterion of Insurers by Fiduciaries

Portfolio predominantly invested in high-quality, diversified, duration-matched fixed income securities
Insurer's general account relative to the size of the group annuity transition
RBC ratio at or above peer levels
Risk profile and profitability of insurer's lines of business
Features of insurer's separate account including risk charge, buffer, and administration charge

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About Us

NBT Bank

Pension Risk Transfer

What We Do

Get Started Today!

How We Help

What We Offer

How Your Company Benefits

Our Process

Our Commitment To You

Frequently Asked Questions

What is a Pension Risk Transfer (PRT)?

How does a PRT work?

How can NBT Insurance Agency help with a PRT?

What does “safest available” annuity provider mean?