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June 26, 2012 /PRNewswire/ -- At a time when the current sources of secure retirement income are under stress, United Technologies Corporation (UTC) has taken a major step forward in engineering greater retirement security for its workforce through its Defined Contribution (DC) plan. As the culmination of a multi-year effort to enhance retirement benefits available through its DC plan, UTC has launched the Lifetime Income Strategy. This new default investment option is based on a design by
AllianceBernstein L.P. (AllianceBernstein) and built to provide the simplicity of a target date fund with the security of lifetime income, similar to a traditional DB plan. The new option offers investors greater freedom, flexibility, and control.
Natalie Morris, UTC's Director of Employee Benefits, stated, "UTC is committed to offering competitive benefit programs that offer substantial value to our employees. We're adding the Lifetime Income Strategy specifically to offer participants who receive their UTC retirement benefits through our DC plan an affordable and effective option designed to provide the opportunity for secure income in retirement. Our goal is to ensure UTC employees have the tools to confidently prepare for retirement, and we believe the Lifetime Income Strategy will be a valuable option for many participants."
The Lifetime Income Strategy is an age-based default investment option that continuously reinforces the power of savings as the means to generating secure retirement income.
"It was critical that the Lifetime Income Strategy preserved the flexibility and control our participants have come to expect from their defined contribution plan," said Robin Diamonte, UTC's Chief Investment Officer. "As the plan sponsor, we wanted a multi-insurer solution to promote price competitiveness and greater capacity."
Kevin Hanney, a UTC Pension Director, added, "The Lifetime Income Strategy combines time-tested solutions into a single, simple to use retirement program designed to provide security and certainty, so that our participants can retire with confidence knowing they will have financial freedom and flexibility even when the unexpected occurs."
The Lifetime Income Strategy was built as a next-generation target date portfolio. More than a single fund or even series of funds, this personalized savings and investment strategy applies the efficacy and simplicity of target date investing to construct a truly individualized approach. Through the Lifetime Income Strategy, each DC plan participant now has access to a target date portfolio built specifically for them.