Pension Plans for Employees

Rewarding loyalty with financial security

As the number-one provider of Defined Benefit (DB) pension plans1 and a leader in pension risk management2, Principal® can help you manage pension plans that work in your business’s favor and your employees’ best interests.

Our solutions 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)

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

Full-service support for active or frozen plans

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

  • Proactive support from a team of independent enrolled actuaries averaging 20+ years of experience3
  • Risk management capabilities and expertise
  • Strategic outsourcing for professional data management and plan administrative services
  • Expertly managed investment choices, including a suite of liability-driven investment options
  • Termination support, from developing a cost-effective and efficient exit strategy to managing the final distribution of assets to participants
  • Access to Principal Financial Advisors investment advisory services4 for help customizing your asset allocation and making ongoing investment decisions5

Solution-neutral risk management you can trust

No single strategy is right for every organization. We look at your plan’s funded ratio, your business’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

Traditionally, the transition to liability-driven investing (LDI) has been difficult for all but the largest plans. Our suite of Principal LDI investment options 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 accounts 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 managers6 and monitoring their performance over time, helping you to manage fiduciary responsibilities
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, July 2015

2 The Principal is ranked "Best in Class" for actuarial consulting skills and services, Chatham Partners 2015 Client Satisfaction Survey.

3 As of December 31, 2014

4 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.

5 When Principal Financial Advisors are appointed as the plan's ERISA Section 3(38) investment manager

6 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.