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. And because of our breadth of services and our unique approach, we’ve applied for a patent on our processes, which we call Principal® Complete Pension Solution.

The patent pending process can include:

  • Comprehensive defined benefit services—choices include administration, trust, and custody of plan assets.
  • State of the art technology integrating plan services such as administrative, actuarial, investment management, and pension risk transfer services.
  • An up-front examination and review of your participant data to help ensure it’s in good order for ongoing administration or plan termination.
  • Offer a commitment to quote an annuity when you are ready to permanently transfer risk.

What can our proprietary system do for you? 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, option 2, 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 services for help customizing your asset allocation and making ongoing investment decisions3

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 (LDI) for DB plans of all sizes

With the team at Principal Global Investors, we can help you, your advisor, or consultant create custom bond portfolios for plans when it makes sense (it’s economical mostly for larger plans).

A custom bond portfolio isn’t for everyone, so our suite of Principal LDI Separate Accounts can help make 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.4

Know your options

Give us a call at 800-952-3343, option 2, 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.

Risk management doesn't have to be hard.

See how our Principal® Pension Risk Management Dashboard can help you protect your plan from market volatility.

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.

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

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

Investing involves risk, including possible loss of principal. Asset allocation and diversification do not ensure a profit or protect against a loss.

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.

Separate Accounts are available through a group annuity contract with Principal Life Insurance Co. Insurance products and plan administrative services provided through Principal Life Insurance Company, a member of the Principal Financial Group, Des Moines, Iowa 50392. See the group annuity contract for the full name of the Separate Account. Certain investment options and contract riders may not be available in all states or U.S. commonwealths. 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.