Due Diligence

Annuity Search and Placement Services

The starting point for our commitment is our annuity bid process. Our thorough analysis ensures that we capture all plan provisions and administrative practices. Our team will review the plan data and develop bid specifications that are clear and concise so that the competing insurance carriers have a complete understanding of the plan. After an insurance carrier has been chosen, the plan sponsor will have a dedicated post-sale representative to guide the plan through the process.

Choosing the Safest Available Annuity– It’s Not Just Ratings and Price

The Department of Labor has clearly stated that ratings and price alone will not ensure compliance with the fiduciary responsibilities of carrier selection. BCG uses The ALIRT™ (AnaLysis of Insurer Risk Trends) Model, which is an industry-leading customized, comprehensive, insurance company solvency analysis and due diligence tool, designed for institutional clients monitoring their exposure to Life and Property & Casualty companies. ALIRT™ alerts us to insurers’ emerging financial trends, which may positively or negatively impact solvency.

Fiduciary Responsibility / DOL IB 95-1

Ratings and price alone will not ensure compliance with the fiduciary responsibilities of carrier selection. The failures of Executive Life and Confederation Life in the early 1990's are examples of highly rated companies going into receivership and retirees receiving less than the promised benefits.

The Department of Labor (DOL) has issued guidelines designed to help plan fiduciaries make sound financial decisions for their plan participants. DOL Interpretive Bulletin 95-1 contains criteria that plan sponsors should consider when selecting an annuity provider. These include, but are not limited to:

  • The quality and diversification of the annuity provider's investment portfolio
  • The size of the contract issuer relative to the proposed contract
  • The level of the insurer's capital and surplus
  • The annuity issuer's lines of business and other indications of the issuer's liability exposure
  • The structure of the annuity contract and any guarantees supporting it

BCG Pension Risk Consultants' proprietary screening system, consisting of two filters to aid in narrowing carrier selection, helps our clients fulfill fiduciary responsibilities and act within the spirit of the law.

Top-rated Insurance Carriers – Names You Can Trust

We monitor the annuity market on a daily basis. We work with all of the major pension annuity carriers and we research each company’s strength carefully before recommending it as a source for annuities. Annually, we attend all Insurance Carrier due diligence conferences, as well as visit each carrier’s service center, to assure that each insurance carrier has a dedicated, quality service system in place to serve the participants and the plan’s needs.

Underfunded Pension Plans

A majority of today’s pension plans find themselves underfunded. BCG has strategies to help plan sponsors manage their pension plan in a cost efficient manner as well as an investment strategy that makes sense from performance to cost. In addition, we provide complete fund due diligence reports.