Nationwide wins pension risk transfer deal with Pennsylvania Farm Bureau
Expanding on a partnership that goes back decades, Nationwide has announced they will assume liabilities for Pennsylvania Farm Bureau through a pension risk transfer (PRT) transaction for their defined benefit (DB) plan.
“Nationwide has been partnering with state Farm Bureaus since its founding in 1926 and we’ve been a proud sponsor for more than 30 years now,” said Kristen Yost, corporate controller, Pennsylvania Farm Bureau. “They understand the agricultural community based on their shared values with our organization. Their proven track record of strength, stability and risk management, as well as experience in the pension risk transfer space will provide a smooth and stable transition for our defined benefit participants.”
Transferring liabilities will allow Pennsylvania Farm Bureau to focus on their core operations, while ensuring their participants’ benefits are protected with Nationwide. In addition to recordkeeping and administrative services, Nationwide will ensure a smooth transition for plan participants by providing access to a dedicated team of call center representatives available for consultative support, as well as safe and secure contact center authentication, account protection and online access to their benefits.
“Nationwide and Pennsylvania Farm Bureau both want to ensure plan participants have the tools and resources they need to help them reach their retirement goals,” said Paula Cole, vice president of Nationwide’s Pension Risk Transfer business. “We are excited about this new opportunity and look forward to continuing to grow our long-standing relationship by providing extraordinary care to their employees beyond just this transition.”
The transaction was facilitated and overseen by Dietrich & Associates, Inc., who has acted as an independent expert to more than 3,000 plan sponsors utilizing group annuity contracts to guarantee pension benefits for more than 800,000 participants.
Nationwide’s Pension Risk Transfer business leverages nearly 100 years of annuity, defined benefit and risk management experience, as well as the company’s outstanding financial strength, to serve a book with more than 400 contracts with a focus on personalized service and transition simplicity.
Nationwide was founded in 1926, then called Farm Bureau Mutual Automobile Insurance Co., selling auto insurance policies to farmers throughout Ohio. Since then, Nationwide has expanded relationships with state Farm Bureaus across the country and grown into the top insurer of farms and ranches in the U.S.1, as well as a leading financial services company.
Visit Nationwide Pension Risk Transfer for more information and resources on PRTs with Nationwide.
1 By direct written premium, AM Best (2020)