FIAs in Pension PlansThe Timing Couldn’t Be Better!
Published May, 2022

In order to sell Fixed Indexed Annuities (FIAs) in pension plans, you need to learn why, from a fiduciary standpoint, they are such a good fit! To learn why FIAs are a no brainer pension plan asset, I have created two helpful resources:

21-Page White Paper – FIAs in ERISA Governed Pension Plans

Recorded  WEBINAR on FIAs in ERISA Governed Pension Plans

I also have a one-page Business Alert and a client version of the white paper advisors can use. If you are interested in either, email me at

Defined Benefit Plan Assets are Down Big (this means Opportunity for you!)

Now that the 12+ year bull run is over, left in the wake of the big downturn in the stock market are Defined Benefit (DB) plans that are now UNDER-FUNDED!

Example—Three-doctor office with 10 employees. Assume the DB plan had $4 million  in it as of December 31, 2020 (assume $500,000 is employee money). Assume the investments in the DB plan mirror a “reasonable” 60/40 mix.  A 60/40 mix is down 14% this year.

So what and who cares? Let’s start with who cares. That would be the pension plan administrator who when they ask the doctors for the current account values of the plan assets will use that value to determine the “required” plan contributions to keep the plan on track.

When the plan administrator hears that the assets are down 14%, they will tell the doctors that their “required” contribution to the plan needs to be much higher this year to “keep the plan on track.”

So, the doctors will care when they have to come up with more money than they mentally may have allotted as an annual contribution and in some cases more money than they have available.

Practical solutionsin the real world, a DB plan can go under-funded for a period of years, but ultimately the plan MUST be funded or the fiduciaries (the doctors in my example) will be forced to make the employees whole out of their personal assets.

This year’s big downturn is an opportunity to talk about FIAs

There is a huge opportunity in the DB market if you can offer superior plan designs and FIAs.

Did you know that there are:

$7.9 trillion in defined contribution plans (401k/Profit Sharing); and
$3.2 trillion in private sector Defined Benefit (DB) Plans?

Did you know that 95% of the insurance companies DO NOT allow their FIAs to be sold in 401(k)/PSPs or DB Plans?

What does that mean? OPPORTUNITY (boundless and unfettered)!

FIAs solve the personal liability problem with DB Plans

As stated, business owners guarantee the retirement benefit in DB plans.

FIAs are a no-risk asset that locks in the gains every year (gains that should be 3-6% depending on the product) and will PROTECT a plan from becoming under-funded.

FIAs are the PERFECT tool to use in DB plans and yet they are almost never used.

Why? Because most companies out there don’t allow their FIAs to be sold in DB plans and most advisors don’t know the products that are available. Those that do will have a competitive advantage.

401(h) Plans (a tax-free retirement plan)

If you also add 401(h) Plans to the mix, you can really hit a home run and onboard several new business clients each year. 401(h) Plans are the only “tax-free” pension plan. To learn more click on the following link:

Do you have business clients?
Do you want to have business clients?
Do you want to go after very large FIA sales?

If so, you need to learn the ins and outs of selling FIAs in pension plans and get appointed with the few companies who allow their products to be sold in these plans.

Roccy DeFrancesco, JD, CAPP, CMP
Founder, The Wealth Preservation Institute
Co-Founder, The Asset Protection Society