Impersonation Mode

Market volatility and low interest rates may prompt many defined benefit plan sponsors to ask "How can we…"

"Stabilize the funded status of our plan?"

When unpredictable markets and investment performance increase risk and add volatility to your plan,

Pacific Insured LDI:

  • Provides a guaranteed contract value that moves in sync with the projected pension liability under all market conditions, while providing liquidity for making plan benefit payments along the way
  • Stabilizes the plan's funded status
  • Reduces plan-related balance sheet and income statement volatility
  • Significantly reduces the likelihood of having to make non-budgeted contributions to the plan

 


Or, Pacific Secured Buy-In:

  • Assumes all investment, interest rate, benefit payment, and longevity risks for the plan sponsor
  • Eliminates the risk of future annuitization cost increases by being convertible to Pacific Transferred Buy-Out at any time with no additional fees or expenses of any kind

 

"Reduce the risk if our plan is currently underfunded?"

When you want to reduce risk without adversely impacting your plan's funded ratio,

Pacific Insured LDI and Pacific Secured Buy-In:

  • Transfer all investment risks from the plan sponsor to Pacific Life (also transfers longevity risk for Pacific Secured Buy-In) while securing liquidity for plan benefit payments
  • Provide a contract value that moves in sync with plan liabilities as interest rates and discount rates change and remains an asset of the plan.
  • Stabilize the plan's funded status without triggering settlement accounting
  • Complement either a contribution strategy or a dynamic asset allocation strategy to get the plan to fully funded status

 

"Reduce the size of our plan's liabilities?"

When you want to reduce the size of your plan's liabilities without terminating the entire plan,

Pacific Transferred Buy-Out:

  • Can be used to settle a specific plan participant group, such as all or a portion of retirees
  • Completely transfers all risks and future obligations to Pacific Life
  • Removes liabilities for the covered group from the plan sponsor's balance sheet

 

"Completely remove plan liabilities from our balance sheet?"

When you want to terminate the plan and eliminate all future plan obligations,

Pacific Transferred Buy-Out:

  • Can be used in conjunction with any lump-sum options to settle all remaining participant groups
  • Completely transfers all risks and future obligations to Pacific Life
  • Completely removes liabilities from the plan sponsor's balance sheet

 

Terminating a plan is a lengthy process. Pacific Insured LDI and Pacific Secured Buy-In can be used as interim solutions to stabilize the plan's funded status and reduce related balance sheet and income statement volatility in the meantime.