Pension Plans for Employees

Rewarding loyalty with financial security

By offering a defined benefit (DB) pension plan, you give your employees a valuable benefit. As you consider the cost of the plan, its funded status and the impact of any volatility, we can help.

As the No. 1 service provider of DB pension plans1 and a leader in pension risk transfer2, we have services that can help you manage pension plans that work in your business’s favor and your employees’ best interests.

Our services include:

  • Traditional DB and cash balance plans, active or frozen
  • Full-service arrangements
  • Outsourced arrangements, including the option to coordinate with your actuary, third party administrator (TPA), and/or registered investment advisor (RIA)

Give us a call at 800-952-3343 ext. 22681, or contact your advisor to learn how our experienced team can help you with your defined benefit plan.

Focus on your needs

DB pension plans are unique, and those who sponsor and manage them have a wide range of needs and interests. Whether your plan is active or frozen, we can help you:    

  • Manage the cost of your plan
  • Manage funded status risk
  • Navigate regulations and the impact on your plan
  • Develop a strategy to terminate your plan

Full-service support for active or frozen plans.

We offer a broad range of DB pension plan services, including:

  • Proactive support from a team of independent-enrolled actuaries
  • Risk management capabilities and expertise
  • Professional data management and plan administrative services
  • Termination support, from developing an efficient and cost-effective exit strategy to managing the final distribution of assets to participants
  • And, if you need it, access to Principal Financial Advisors investment advisory services3 for help customizing your asset allocation and making ongoing investment decisions4

Solution-neutral risk management you can trust

No single strategy is right for every organization. We look at your plan’s funded ratio, your organization’s financial situation, the plan size, the current economic outlook, and a range of other factors to find the risk management approach that fits your business best, including:

  • Liability-driven investing (LDI)
  • Dynamic asset allocation
  • Plan design
  • Lump sum distributions
  • Annuities

Liability-driven investing for DB plans of all sizes

Our suite of Principal LDI investment options can help makes it easier to implement an LDI strategy for any DB plan, no matter its size.

Our LDI investment options offer:

  • Help managing volatility with distinct duration bands—and the option to combine multiple portfolios to match the duration of a plan’s assets to that of its liabilities.
  • Emphasis on corporate bonds to reflect the connection between the funded status of DB plans and the corporate interest rate environment.
  • A rigorous and disciplined process of selecting top investment managers and monitoring their performance over time, helping you to manage fiduciary responsibilities.5

Know your options

Give us a call at 800-952-3343 ext. 22681, or contact your advisor, to see how we can help you with your pension plan needs.

Managing a successful defined benefit plan

Help avoid unwanted surprises and keep your pension plan’s goals on track with these tips and insights from our defined benefit team.

Looking to transfer pension risk?

You’re in the right place. We’ll partner with your business to implement and manage a pension risk transfer solution.

What issues impact DB plans today?

Find out on our blog.

Learn more about our retirement plans

Call us at 800-952-3343 ext. 22681 to discuss your options.

1 PLANSPONSOR DB Administration Survey, May 2018.

2 Based on single premium product sales. LIMRA, 2018.

3 Principal Financial Advisors, Inc. is a registered investment adviser and member company of the Principal Financial Group®. Asset Allocation strategies are developed using Separate Accounts available through a group annuity contract of Principal Life Insurance Company.

4 When Principal Financial Advisors is appointed as the plan's ERISA Section 3(38) investment manager.

5 The term “manager” or “investment manager” may also refer to an investment advisor or sub-advisor of an underlying mutual fund.

No investment strategy, such as diversification or asset allocation, can guarantee a profit or protect against loss in periods of declining value

Investing involves risk, including possible loss of principal.

Asset allocation and diversification does not ensure a profit or protect against a loss. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline.

Principal Financial Advisors, Inc. is a registered investment adviser and member of Principal Global Investors. Principal Global Investors leads global asset management and is a member of the Principal Financial Group®.

Asset allocation strategies are developed using Separate Accounts available through a group annuity contract of Principal Life Insurance Company.

Insurance products and plan administrative services provided through Principal Life Insurance Co. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Principal Life, Principal Funds Distributor, Inc. and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392. Certain investment options and contract riders may not be available in all states or U.S. commonwealths. Separate Accounts are available through a group annuity contract with Principal Life Insurance Company. See the group annuity contract for the full name of the Separate Account. Principal Life Insurance Company reserves the right to defer payments or transfers from Principal Life Separate Accounts as permitted by the group annuity contracts providing access to the Separate Accounts or as required by applicable law. Such deferment will be based on factors that may include situations such as: unstable or disorderly financial markets; investment conditions which do not allow for orderly investment transactions; or investment, liquidity and other risks inherent in real estate (such as those associated with general and local economic conditions). If you elect to allocate funds to a Separate Account, you may not be able to immediately withdraw them.