Principal Is Hoping for Congressional 401(k) Annuitization Help
April 30, 2019 by Allison Bell
Principal Financial Group Inc. posted $600 million in sales of the big group annuities that help employers shed defined benefit pension obligations in the first quarter.
Now the company is hoping Congress will help boost sales of group annuities, or group annuitization features, to 401(k) plans and other defined contribution retirement plans.
Renee Schaaf, the head of the Des Moines, Iowa-based life insurer’s retirement income solutions unit, talked about the federal 401(k) plan annuitization safe harbor fight Friday, during a conference call the company held to go over the company’s first-quarter earnings.
Congress is considering legislation that could help employers reduce their potential exposure to legal liability when they pick providers of lifetime income options for their 401(k) plans.