Transamerica has announced the availability of a new, custom stable value separate account product developed specifically for 403(b) retirement plans. The Transamerica Capital Preservation Option is a group annuity contract issued by Transamerica Life Insurance Company.
The firm notes that, unlike most general account or pooled separate account stable value products available to 403(b) retirement plans, this solution will offer transparency and flexibility regarding its crediting rate, expense ratio and underlying separate account mandate. The fee for the option is based on an expense ratio that is explicitly stated.
“With the Transamerica Capital Preservation Option, plan sponsors can rely on contract features including a transparent crediting rate formula, an array of best-in-class underlying fixed-income managers, and contract termination provisions that allow plan sponsors to take a market value gain over the contract balance,” explains Blake Bostwick, Chief Executive Officer of Workplace Solutions at Transamerica.
The option is available on an investment-only basis and is available in all states except New York, Minnesota and California. Minimum investments start at $40 million for 403(b) retirement plans, although Transamerica says that it may consider smaller amounts.
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