CitiStreet is offering immediate annuities from eight leading companies to retiring participants in its defined contribution retirement plans.
The offerings are not options within the defined contribution platform, however. In order to participate, investors must retain a balance in their DC plan. "This is a great way for the plan sponsor to help retain retiree assets in the plan," noted Ray Martin, president and CEO of CitiStreet Advisors. And for the investor, "the Income Solutions product allows a participant to pensionize part of his or her retirement savings, effectively converting a portion of their savings into a regular, insured income to pay essential expenses" while still growing their 401(k) assets.