Transamerica Launches New Stable Value Solution for 403(b) Retirement Plans

Transamerica announces the availability of a 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. 

Unlike most general account or pooled separate account stable value products available to 403(b) retirement plans, Transamerica’s new stable value solution offers transparency and flexibility regarding its crediting rate, expense ratio, and underlying separate account mandate. 

• The fee for the Transamerica Capital Preservation Option is based on an expense ratio that is explicitly stated. 
• Crediting rates are calculated annually using a contractually specified crediting rate formula. Plans that implement this option by the end of the second quarter of 2020 are guaranteed a minimum crediting rate of one percent for the life of the contract.

“Transamerica is pleased to offer this innovative stable value solution to employers with 403(b) retirement plans for their employees,” said Blake Bostwick, Chief Executive Officer, Workplace Solutions at Transamerica. “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. These are features that 403(b) retirement plan sponsors appreciate.” 

The Transamerica Capital Preservation Option is available on an investment-only basis. The

Transamerica Capital Preservation Option is available in all states except New York, Minnesota, and California. Minimum investments start at $40 million for 403(b) retirement plans, although Transamerica may consider smaller amounts.

“With Transamerica’s experience in recordkeeping large-market 403(b) plans, and experience as a leading issuer of synthetic guaranteed investment contracts, we created a stable value product that meets the needs of 403(b) retirement plan clients and their trusted advisors,” said Kent Callahan,

Senior Managing Director of Workplace Distribution and Head of Client Engagement at Transamerica.

“We listen closely to the requests of our plan sponsor clients, and the introduction of this new investment choice is evidence of our dedication to meeting the specific needs of not-for-profit organizations as they help their employees plan for retirement.”