Pacific Life Debuts Retirement Income-Focused CIT Series
Pacific Life announced today the launch of Income Horizon, a retirement income-focused collective investment trust (CIT) series designed to help defined contribution (DC) plan participants accumulate guaranteed lifetime income during their retirement savings journey.
The series is enabled through Matrix Trust Company, which provides the CIT structure and serves as the discretionary trustee, and is a subsidiary of Broadridge Financial Solutions.
“We are seeing plan sponsors and advisors look for more practical, scalable ways to help participants move from saving for retirement to generating income in retirement…”
Pacific Life’s Karen Neeley
“As demand for retirement income solutions continues to grow within defined contribution plans, we are seeing plan sponsors and advisors look for more practical, scalable ways to help participants move from saving for retirement to generating income in retirement, ultimately turning retirement savings into lifelong paychecks,” said Karen Neeley, Head of the Institutional Retirement Solutions Group at Pacific Life.
“At the same time, collective investment trusts have become an increasingly preferred vehicle in DC plans,” said Christine Bass, Head of Defined Contribution Lifetime Income at Pacific Life. “The Income Horizon CIT series integrates these capabilities to help deliver guaranteed lifetime income through a structure designed for broad adoption within DC plans by making it easier for all providers within the defined contribution ecosystem to incorporate lifetime income as a distinct asset class within existing plan structures.”
Income Horizon is a deferred income solution that enables participants to build guaranteed lifetime income during their working years. By allocating a portion of ongoing contributions, participants can steadily build future payments over time, creating a clearer and more predictable path from savings to retirement. Participants also benefit from liquidity and flexibility as they accumulate savings, along with options designed to help protect their savings when they transition to lifetime income payments.
As the discretionary trustee, Matrix Trust Company provides CIT governance, fiduciary oversight, and operational infrastructure. This helps support both the implementation and ongoing administration of Income Horizon through a qualified, plan-ready vehicle already familiar to many plan partners.
“Pacific Life’s launch of Income Horizon through a CIT structure reflects the kind of innovation the retirement market is increasingly seeking, with solutions designed to help connect retirement savings to income in a practical, scalable way,” said Joe Matarazzo, Head of Broadridge’s Retirement and Workplace Solutions. “At Matrix Trust Company, we are committed to helping asset managers and insurers deliver retirement income solutions through the governance, operational support, and retirement services infrastructure needed for adoption at scale.”
Unlike approaches that rely on estimates of future income, Income Horizon uses clearly defined income units that represent a specific amount of guaranteed lifetime income. These units help provide participants with greater clarity around their accumulated income, empowering individuals to plan for retirement with enhanced precision.
The Income Horizon CIT series is available through the National Securities Clearing Corporation (NSCC). Plan sponsors and advisors may contact their Pacific Life representative for additional information regarding availability and implementation.
SEE ALSO:
• Pacific Life Enhances RILA Strategy
• Voya Launches Multi-Manager Alternative CITs for Defined Contribution Plans
• LeafHouse, GTC Partner on Proprietary CIT Platform
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.