New York Life Investments has launched Guaranteed Interest Pension Account (GPA). GPA provides organizations with an investment option for near-term qualified pension plan liabilities
GPA will allow sponsors to structure a portion of their assets to mirror liability cash flows, as outlined in the funding model set forth by the Pension Protection Act of 2006 (PPA).
New York Life said the GPA solves for the ‘near-term’ (0-5 years) segment by providing sponsors an investment option that offers a guarantee of principal coupled with competitive yields.
New York Life Investments managing director and head of retirement investments Steven Dorval said that PPA changed the investment dialogue for pension plans. Sponsors and advisors are focused on funding their liabilities.
"The group is working with clients to help meet their liability needs within the three distinct liability segments defined by the PPA, as they consider a range of options, including moving toward a liability driven investment (LDI) model. GPA is a solid solution," Dorval said.