Pension Risk Transfer

How SilverStone Group can help


How SilverStone Group can help

The Defined Benefits division of SilverStone Group employs a staff of actuaries, analysts and administrators who understand pension plans. We are the experts who ensure that pension plan participants receive the benefit that has been promised.

We guide the plan sponsor through the steps necessary for a successful risk transfer with a group annuity purchase. We are experienced with necessary IRS and PBGC filings and participant notices. We will go the extra step to communicate directly with participants to explain the changes and their options.

The Department of Labor has dictated that a plan sponsor purchase the safest annuity available. This requires extensive research of insurance companies who offer group annuities. Through our membership with M Financial Group, we have access to the most current life insurance company financial analyses. M Financial Group continues to lead the industry in life insurance due care and client advocacy, providing valuable insight and analysis that delivers significant value to our clients.

SilverStone Group has the edge over terminal funding companies. We can assume the actuarial responsibilities for a pension plan and keep it operating smoothly until the time is right to transfer the risk. Instead of locating a separate broker to handle the annuity purchase, we are licensed and experienced to find the best annuity at the best price for our client.

Steps to Pension Risk Transfer

  1. Identify potential participant groups to settle. Options may be all retirees or a subset of retirees (e.g., over a certain age), and/or deferred vested participants.
  2. Quantify costs and financial impact on the plan and the organization. We recommend forecasting the contributions to the plan both with and without the annuity purchase.
  3. Identify the appropriate participant group, an acceptable level of costs and acceptable financial impact.
  4. Obtain necessary approvals for action.
  5. Monitor annuity pricing and funded ratio for the opportune time to settle.
  6. Complete due diligence review of potential insurance carriers.
  7. Adjust asset allocation strategy to attain objectives and for sufficient liquidity to purchase the annuity.
  8. Implement the strategy and begin the bidding process for annuity purchase.
  9. Provide communication to participants involved, finalize the annuity contract and distribute annuity certificates.

Meet the Team