The world of retirement benefits has witnessed a profound evolution – from the era of guaranteed lifetime pension plans to the modern 401(k) plans. As workforce needs and economies shift, retirement benefits have followed suit, with the government stepping in to add regulation and protection as it deems necessary. Through this transformation, pivotal tools – like Pension Risk Transfers (PRT) – have helped companies bridge the transition.

The importance of attracting & retaining employees

Retirement benefits have been an essential component of the modern workplace for over a century. In the late 1800s, the concept of pensions emerged as a means to attract and retain employees, offering them financial security in their golden years. The promise was simple: work hard and be rewarded with a pension that provides a steady income after retirement. The loyalty went both ways.

Though effective in its time, the traditional defined benefit (pension) model came with expenses, risks and responsibilities for employers.