Major clients OK IncomeFlex.
Prudential Retirement has landed two big clients for its IncomeFlex Target product, which provides a way for retirement plan participants to obtain a guaranteed stream of lifetime income from their plan assets. In April, Prudential announced agreements with Mercer, a Marsh & McLennan subsidiary involved in benefits outsourcing, and Hewitt Associates, the largest independent record-keeper of 401(k) plans.
IncomeFlex Target integrates a guaranteed lifetime income product into target-date funds. These funds attracted $58 billion in new investments in 2007, more than all other fund categories combined, said Christine Marcks, president of Prudential Retirement. The product can also be applied to life-cycle funds or to asset-allocation programs.
IncomeFlex Target does not require annuitization. Plan participants retain control of their assets and the potential to capture market growth. The product fee is in addition to investment management charges. Excess withdrawals reduce future guaranteed withdrawals proportionately.
Product News is compiled by Senior Associate Editors Lori Chordas and Ron Panko.