New Account Helps Corporate Pension Plans Manage Liabilities

WESTWOOD, Mass., May 31, 2011 /PRNewswire/ -- New York Life Investments announced today the launch of the Guaranteed Interest Pension Account (GPA). GPA provides organizations with a well-suited investment option for near-term qualified pension plan liabilities.

GPA allows sponsors to structure a portion of their assets to mirror liability cash flows, as outlined in the funding model set forth by the Pension Protection Act of 2006 (PPA). The PPA outlines three segments for liabilities based on duration and the corporate bond yield curve. The GPA solves for the "near-term" (0-5 years) segment by providing sponsors an investment option that offers a guarantee of principal coupled with competitive yields.

"The PPA changed the investment dialogue for pension plans," said Steven Dorval, CFA, managing director and head of retirement investments at New York Life Investments.  "Sponsors and advisors are focused on funding their liabilities. We are working with clients to help meet their liability needs within the three distinct liability segments defined by the PPA, as they consider a range of options, including moving toward a liability driven investment (LDI) model. GPA is a solid solution."

GPA is a group annuity contract issued by AAA-rated New York Life Insurance Company, parent company of New York Life Investments. It offers plan sponsors competitive yields while limiting volatility. Contributions are invested in a broadly diversified fixed income portfolio within New York Life's general account. The GPA features a declared interest crediting rate that resets every six months, allowing plan sponsors more visibility into and control over their pension plans.

About New York Life Retirement Plan Services

New York Life Retirement Plan Services offers bundled retirement plan solutions and defined contribution investment only products throughout the United States. New York Life Retirement Plan Services, a division of New York Life Investments, administers $41 billion in bundled retirement plans and manages over $4.3 billion in defined contribution investment only assets as of March 31, 2011.  With offices in Westwood, Massachusetts, Parsippany, New Jersey, and San Francisco, New York Life Retirement Plan Services is widely recognized for its leadership within the retirement plan industry.

About New York Life Investments

New York Life Investments ranks among the largest asset management firms in the United States(1). Through its multiple boutique management structure, New York Life Investments offers access to leading institutional managers that drive performance.  Through MainStay Investments and NYLIFE Distributors LLC, New York Life Investments provides access to some of the most highly regarded mutual funds and wrap accounts in the industry. Together with its affiliates and over 1,400 employees, New York Life Investments manages over $288 billion in assets as of March 31, 2011. New York Life Investments is a leading provider of retirement plans for corporations, multi-employer trusts, and individuals, and is recognized as one of the nation's top providers of guaranteed products to both the qualified and non-qualified markets.  

"New York Life Investments" is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.

New York Life Insurance Company, New York, New York

(1) Source: Pensions & Investments, May 31, 2010.

SOURCE New York Life Investments

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