Products April 3, 2018

Employers May Offer Retirement Income Product From Prudential

Prudential has introduced Guaranteed Income for Tomorrow (GIFT).

Reported by

Prudential has introduced Guaranteed Income for Tomorrow (GIFT), an online guaranteed lifetime income product that it is distributing through Prudential Group Insurance’s worksite customer relationships.

GIFT is a voluntary deferred income annuity, and while not an employer-provided benefit, employers can allow Prudential to make GIFT available to their employees and collect payroll deductions, if they choose.

It can be purchased with monthly after-tax income for as low as $100, and individuals can start, stop, increase or decrease contributions at any time. The online platform has educational materials to help people make an informed purchase decision, and that is supported with a dedicated service team available to answer product-specific questions.

According to a 2016 Prudential report, 67% of American workers are afraid that their savings won’t last. Prudential says these fears are well-founded, citing a 2017 survey by the Employee Benefit Research Institute that found 32% of workers age 55 and older have less than $25,000 saved for retirement.

“This new capability is just one part of our strategy to bring financial wellness solutions to the marketplace and make it easier for individuals to build financial security,” says Jamie Kalamarides, president of Prudential Group Insurance. “GIFT provides consumers with access to a simple, flexible and affordable way to generate guaranteed retirement income through a unique solution through a sister business.

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Ask the Experts April 3, 2018

(b)lines Ask the Experts – What or Who is a ‘Named Fiduciary’?

“Recently the recordkeeper who is taking over administration of our Employee Retirement Income Security Act (ERISA) 403(b) plan from a prior recordkeeper asked for the identity of the plan’s “named fiduciary.” Though I am well familiar with who the plan’s fiduciaries are, I am unfamiliar with the term “named fiduciary.” Can the Experts clarify?”
Reported by

Stacey Bradford, David Levine and David Powell, with Groom Law Group, and Michael A. Webb, vice president, Retirement Plan Services, Cammack Retirement Group, answer:

 

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Of course! Though, there can be a number of fiduciaries in a plan by function, there is a form requirement under ERISA Section 402(a)(2) for all plans that are subject to ERISA that at least one individual or entity be named in the plan document as a fiduciary; hence, the term “named fiduciary.” Most commonly, a named fiduciary is either the sponsoring employer, the company’s board of directors/trustees, or an appropriate administrative committee of the board, though other individuals/entities can serve as the “named fiduciary” as well.

 

Thus, in order to locate the identity of your “named fiduciary,” you should review your plan document, as that document will specifically identify the named fiduciary. You might also want to provide your recordkeeper with a copy of your plan document as well, since the fact that the recordkeeper posed this question indicates that they may not have a current plan document in their possession.

 

 

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.

 

Do YOU have a question for the Experts? If so, we would love to hear from you! Simply forward your question to Rebecca.Moore@strategic-i.com with Subject: Ask the Experts, and the Experts will do their best to answer your question in a future Ask the Experts column.

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