Mary Beth’s Corner

Guaranteed Income Providers?: A Guide for Financial Advisors

Administration, General
July 18, 2024

Understanding Guaranteed Income Sources

Navigating ERISA standards to select a guaranteed income provider for retirement plans can be a critical task for Plan Sponsors. As fiduciaries under ERISA, Plan Sponsors must prioritize the best interests of plan participants, which requires careful evaluation when choosing providers like annuities and lifetime income solutions. To understand ERISA standards for selecting a guaranteed income provider for retirement plans, it’s important to consider the benefits and features of guaranteed income products.

Key Features to Consider

According to a recent legal opinion on Nestimate’s Guaranteed Income product, when evaluating guaranteed income providers, consider the following features:

Flexibility: Look for products that allow participants to purchase income units gradually over time, providing flexibility in building their guaranteed income.
Portability: Ensure the product offers portability, allowing participants to maintain their guaranteed income even if they change employers.
Customization: Products that allow participants to select their income start date can better accommodate individual retirement plans.
Guaranteed Returns: A minimum guaranteed return provides a baseline of security for participants.
Growth Potential: While guarantees are crucial, products that offer the potential for income increases based on market performance can help offset inflation.

We Bring It All Together for You!

At My Benefits, we specialize in partnering with Financial Advisors to assist Plan Sponsors in navigating the complexities of ERISA compliance and optimizing retirement outcomes.

Contact our expert team today to discover how we can support you and your business owner clients in enhancing fiduciary excellence and securing a prosperous retirement future for them and their employees!