Lincoln offers annuity rider on DC plans

Lincoln Employer Markets announced today that the Lincoln National Life Insurance Company now offers an annuity rider on its defined contribution plans. The program called i4LIFE Advantage allows participants to convert their retirement plan savings into lifetime income with an opportunity for growth. Executives at Philadelphia-based Lincoln say this variable annuity is designed to offer minimum payout guarantees. Industry studies have shown that a shortcoming of the 401(k) plan is that it does not easily convert into lifetime income for the long-term needs of retired participants. This product would help fill that gap, said Mark Hackl, vice President of Defined Contribution Pricing and Product Development for Lincoln Employer Markets. He said the company launched a similar product on the individual side of the business but believes it’s important to offer this to institutional customers as well. “One of traditional objections of annuities is the fixed nature of them and the inability to provide a hedge against inflation,” he said. “We’ve designed this to have equities in the marketplace. And because of volatility the guaranteed minimum protection is important.”