The BCG Pension Insider
January 2021 – Volume 111, Edition 1
BCG Pension Risk Consultants Announces First of Its Kind End-to-End Solution for Defined Benefit Pension Plans
Firm also adds pension industry veterans as part of its service expansion initiative
BRAINTREE, MA, January 12, 2021 — BCG Pension Risk Consultants | BCG Penbridge (“BCG”), a leader in defined benefit risk mitigation services, today announced an expansion of its traditional brand as an expert in the field of liability settlements and plan terminations, into a firm that encompasses a broader suite of services designed to provide a customized approach to help plan sponsors reach their desired plan “endgame” in the most efficient way possible.
BCG also announced the addition of pension industry veterans, Dan Atkinson and Pat Kendall, to their team of highly experienced consultants to help drive and deliver this new solution to the defined benefit plan marketplace.
Atkinson, with over twenty years in the retirement business, joined BCG in the first quarter of 2020 after previous positions held at River and Mercantile, Mercer, and Fidelity. He holds the FSA (Fellow in the Society of Actuaries) and EA (Enrolled Actuary) designations, and most recently served as Chief Actuary at River and Mercantile.
Kendall, with over thirty years in the retirement business, joined BCG in the fourth quarter of 2020 after departing MassMutual where he was Head of Defined Benefit Product and Distribution. In addition to MassMutual, Kendall has also held sales management and leadership roles at Diversified, Transamerica, and OneAmerica. Kendall holds the FCA (Fellow in the Conference of Consulting Actuaries) and EA designations, and is also a FINRA registered representative.
In collaboration with a leading liability driven investment (“LDI”) manager, BCG now offers the first of its kind end-to-end solution covering the following services: defined benefit plan cost analysis, pension risk transfer (“PRT”) analysis, asset liability modelling, custom liability benchmark design, bottom-up fixed income portfolio management, funded status tracking, customized buyout price monitoring and comprehensive implementation support for lump sums, annuity placements and plan terminations.
“Our new LDI-PRT offering brings a seamless, end-to-end solution to the small to mid-size pension marketplace,” said Mike Devlin, Founder and Principal of BCG. “The solution is designed to break down the inefficiencies in information sharing and decision making that arise when PRT consultants and asset managers are not closely aligned and brings together asset management and liability management through a highly coordinated and unified set of services.”
Unique to the value proposition of BCG is the fact that the firm is 100% aligned with the goals of the plan sponsor. BCG provides sponsors with independent, unbiased information and analysis, to actively support their plan’s pension de-risking journey.
About BCG Pension Risk Consultants | BCG Penbridge
BCG specializes in assisting defined benefit plan sponsors with managing the costs and risks associated with their pension plans. Since 1983, BCG has successfully helped over 2,000 organizations achieve their pension de-risking goals. Our clients range from publicly-traded companies, to privately held firms, and include healthcare, banks and not-for-profit organizations. BCG helps clients with the full range of pension de-risking strategies from liability driven investing approaches to partial or full pension risk transfer, including navigating the complex and lengthy process of plan termination. BCG frequently works in collaboration with law firms, consulting actuaries, investment consultants, asset managers and financial advisors. BCG is headquartered in Braintree, MA with satellite offices across the US. Please visit our website at: www.bcgpension.com.
Securian Financial Commences Participation in BCG’s Monthly Annuity Buyout Pricing Survey
Securian Financial (Minnesota Life Insurance Company and Securian Life Insurance Company) is now participating in BCG’s monthly annuity buyout pricing survey, effective this month. With a demonstrated track record in administering defined benefit plans since 1947, Securian Financial entered the PRT market in 2015 and has written over $3.5 billion of PRT annuities since entering the business. There are a total of eleven new entrants since 2014, bringing the total number of PRT insurers currently active in the market to 18.
There are now ten insurers participating in BCG’s monthly pricing survey. Other participating insurers include AIG, MassMutual, MetLife, Mutual of Omaha, OneAmerica, Pacific Life, Principal, Prudential and Western & Southern.
BCG uses the rates gathered in its survey to monitor annuity pricing for its clients via its customized buyout price monitoring (CBPM) service and also to compile the BCG PRT Index which is the longest standing pension buyout index in the United States. The Index provides easy comparison of annuity pricing to various important pension liability measures.
To learn more about BCG’s CBPM service or the BCG PRT Index, please visit www.bcgpension.com
ANNUITY PURCHASE RATES
Sample Interest Rates for a Pension Annuity Buyout
(Assumes no lump sums, disability, or unusual provisions)
Retirees (duration of 7) – 1.47%
Term Vesteds (duration of 10) – 1.71%
Actives (duration of 15) – 1.82%
Annuity Purchase Rates as of January 1, 2020