Wells Fargo & Co. will make Prudential Retirement’s IncomeFlex in-plan annuity option available to some three million plan participants at about 3,000 defined contribution retirement plans, the two companies announced. Prudential Retirement is a unit of Prudential Financial, Inc. IncomeFlex is already available to participants at about 7,000 defined contribution retirement plans.
IncomeFlex allows plan participants who are nearing retirement to buy a stand-alone living benefit that works a lot like the guaranteed lifetime withdrawal benefit on a retail variable annuity contract, but less expensive and simpler because it’s sold institutionally. Participants who choose the option pay an added fee and a floor is established under the amount of income they can receive for life under the terms of the contract.
Wells Fargo & Company has $1.4 trillion in assets and provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet. It has offices in more than 35 countries and 270,000 employees serving one in three U.S. households. It ranks 25th on Fortune’s 2013 rankings of America’s largest corporations.
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