Pension Risk Transfer Digest

Did you know?

Non-tax deductions could quietly undermine your PRT clean exit

Including non-tax deductions such as medical, dental, vision or union dues in Pension Risk Transfer (PRT) transactions typically means the plan sponsor is never fully removed from the ongoing administration.

When a company executes a PRT transaction — transferring pension payment obligations to an insurance carrier through an annuity purchase — one often-overlooked decision point is what to do with ancillary deductions. For example, many retirees have health insurance premiums withheld directly from their monthly pension checks. Deciding whether to carry that arrangement forward through the insurance carrier, or transition retirees to a direct pay model, requires careful evaluation of administrative, financial and participant experience factors.

Key takeaways for plan sponsors

While most insurance carriers can accommodate non-tax deductions, the decision to include or eliminate deductions in a PRT transaction is more than an administrative detail. It has long-term implications for operational complexity, carrier relationships and participant satisfaction. When deciding whether to include deductions in a transaction, plan sponsors should take these 3 steps:

A thoughtful, well-communicated approach — whichever path is chosen — will go a long way toward protecting both the integrity of the transaction and the experience of the participants it serves.

Want to learn more?

Talk to our PRT team about your deduction strategy.

PRT rate update^1,2,3

Pricing matters and drives product success.

PRT pricing follows high-quality corporate bond rates, just like pension liability values do. When interest rates go up, PRT costs go down. When rates drop, costs rise. Prices change daily based on what insurers can earn in the market.

In Q1 2026, F&G rates decreased around 9 basis points, translating to a slightly higher PRT Transaction cost with F&G maintaining our competitiveness relative to our peers.

¹ All rates based on 7 year duration all retiree population.

² F&G sample rate represents preliminary pricing for a hypothetical mixed collar transaction less than $100M in size. Actual final pricing will vary based upon actual transaction details.

³ Average competitor rate based on annuity rates published by BCG Pembridge.

Describe your role in PRT.

In my role as a PRT Operations Associate, I serve as a central point of contact for clients and third-party administrators, ensuring smooth transaction integration and ongoing operational support. I oversee deal activities following F&G’s win which include onboarding, data analysis, contract execution and certificate delivery.

What brought you to F&G?

I was drawn to this role by my interest in large-scale financial operations and client-facing work that blends technical execution with relationship management. I saw a lot of potential to grow at F&G, both in building my PRT knowledge and taking on more responsibility over time as I continue to develop.

What's your favorite aspect of PRT?

I like managing the project plan and seeing how all the pieces come together in a structured but complex process. There is a sense of accomplishment as each phase progresses that makes the work challenging and engaging. Even after just three months at F&G, I have found the team environment incredibly energizing and motivating as I experience a strong culture of shared commitment to success in PRT.

How do you spend a typical Saturday?

I enjoy long walks around Chicago, discovering restaurants with my husband, checking out musicals and art exhibitions with friends. I love crafts and puzzles, so you can find me cross-stitching, painting, or playing Splendor and Mahjong at home. I always like exploring new hobbies, so this spring I will be trying woodworking.

Favorite book, podcast or show?

My favorite show is Dexter which I am currently rewatching. I am a fan of reality and lifestyle shows, like Selling Sunset, Love is Blind, Love Island, and house makeover shows. Currently I am reading “Midnight in the Garden of Good and Evil” after visiting Savannah and getting inspired by the city.