NEW YORK - March 14, 2013 According to MetLife's 2013 Stable Value Study, released today, the vast majority (86%) of plan sponsors have been offering stable value as an investment option in their defined contribution (DC) plans for more than two years, and more than 78% are not planning to make changes to their stable value offerings within the next year. Among those plan sponsors that added stable value as an investment option in their DC plan in the past two years, 47% said they did so to provide participants with a capital preservation fund, 37% said stable value offers higher interest rates than other, comparable investments, and the same percentage said it was recommended by their recordkeeper/TPA.
MetLife commissioned this study of 140 plan sponsors and 19 stable value fund providers to gain updated insights into the current landscape of stable value products since its inaugural study, released in 2010. The new study can be found at www.metlife.com/stablevaluestudy.
Among plan sponsors that offer stable value as an investment option in either their 401(k) or 457 plan(s), 48% say that their plan's stable value option is backed in part by traditional GIC(s), 31% say they include separate account GIC(s) and 19% have synthetic GIC(s). The largest plans (10,000 or more plan participants) are more likely than small plans (100 to 999 participants) to say their offering is backed in part by a synthetic GIC (45% vs. 12%). About 75% of stable value fund providers also indicated their offerings included more than one investment type.
However, when it comes to understanding the arrangements plan sponsors have selected, more than one in five plan sponsors (22%) who offer stable value to their participants said they did not know what types of stable value contracts back their offering, and the low percentage of smaller plans identifying synthetics as elements of their stable value option suggests they may not be aware that pooled stable value funds often incorporate all three types of contracts. This finding is consistent with the results of MetLife's 2010 Stable Value Study, though the overall level of familiarity among plans sponsors and stable value fund providers has increased for most factors since the initial study.
The safety and stability provided by stable value funds have made them a consistently popular choice for qualified plan participants, particularly during challenging economic times, said Thomas Schuster, CFA, vice president and head of Stable Value Investment Products, MetLife. That said, as the market stabilizes, plan sponsors and fund providers should not become complacent. While understanding of stable value contract provisions has increased slightly, knowledge of how these terms actually affect stable value outcomes is less well understood.
When accessing stable value, nearly two-thirds of plan sponsors (62%) indicate that they predominantly access or arrange their stable value offerings through a recordkeeper or full-service provider, and an additional 13% of plans access stable value funds through a TPA. A small number of plan sponsors (only 5%) access stable value through a pooled fund offered by an investment-only stable value manager, and even fewer (4%) use a qualified professional asset manager (QPAM) to access their stable value offerings.
The potential mixture of investment managers, wrap providers and contracts available today makes it especially important for the plan sponsor to recognize and become educated about the similarly wide variety of regulations that govern each type of arrangement, added Warren Howe, National Sales Director, Stable Value Markets, MetLife. This includes variations in wrap contract provisions and guarantees, in addition to the standard due diligence with regard to investment providers, strategies and guidelines.
CONSIDERATIONS FOR PLAN SPONSORS The 2013 MetLife Stable Value Study also offers some important implications for plan sponsors and those with whom they work to consider:
Take affirmative steps to guard against complacency: While this study shows improvement in some aspects of plan sponsor understanding of stable value contract terms, it suggests that the knowledge of how these terms actually affect stable value outcomes is less well understood. Take the time to ask and have your stable value providers explain how their contracts will work for your plan.
Become familiar with all three basic stable value contract structures: This study makes it clear that traditional GICs, separate account GICs and synthetic GICs are all well represented in today's stable value options, and suggests that options are increasingly backed by more than one type of contract.
Take the time to discuss the mechanics of your stable value option with your stable value providers: Both the contract and agreement terms and their effects how they will work in practice are important. This study indicates more progress on the former than the latter. The richness of choices that the current stable value market offers sponsors requires attention to how the providers, structures and access points selected all work together in support of the sponsor's stable value option.
Be mindful that adding more fiduciaries does not make a sponsor any less a fiduciary in its own right: This study suggests that the incidence of sponsors retaining advisors for help with arranging or monitoring their stable value options has climbed sharply since the 2010 study. Sponsors should be mindful that retaining an advisor is intended to assist them in meeting, rather than a substitute for, their own fiduciary responsibilities.
Give thoughtful consideration to the interaction between 404(c) and QDIA safe harbors: Sponsors that have adopted a QDIA in connection with auto-enrollment whose overall plans are structured to rely on the 40
Most recent headlines
17/12/2025
Sports Broadcasting Hall of Fame Inducts 10 Industry Icons During Unforgettable ...
17/12/2025
ESPN to Debut MNF Playbook with Next Gen Stats, a New AI-Driven NFL Data-AltCastThe series, powered by Adrenaline TruPlay AI, launches Dec. 22 and runs through ...
17/12/2025
Inaugural Optum Golf Channel Games Debut Under the Lights' in Primetime on ...
17/12/2025
The right playlist is essential on New Year's Eve, building the energy as you get ready and keeping it high as you count down to midnight. This year, Spotif...
17/12/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
17/12/2025
Audiences Watched Over 103 Billion Minutes of TV on Thanksgiving Day
NFL Games ...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
17/12/2025
KPop Demon Hunters Stars Visit Berklee for Weeklong Celebration Andrew Choi and EJAE, who voiced the film's main characters and contributed to its soundtr...
17/12/2025
Wednesday 17 December 2025
Heated Rivalry will be coming to Sky and streaming service NOW on 10 JanuaryTurn on cookies to view this content. Go to Privacy opti...
17/12/2025
Back to All News
Inside The Unseen World Of Indian Customs: Netflix Reveals The...
17/12/2025
Back to All News
Netflix announces PAPARAZZI KING: the docu series coming to Ne...
17/12/2025
Back to All News
Netflix Unveils First Look at Jo Nesbo's Detective Hole Pr...
17/12/2025
Back to All News
Netflix Welcomes Warner Bros. Discovery Board Recommendation
Business
17 December 2025
Global
Link copied to clipboard
After Careful Revi...
17/12/2025
RT has announced that Kathy Fox has been appointed Commissioning Editor with re...
17/12/2025
The Hao AI Lab research team at the University of California San Diego - at the forefront of pioneering AI model innovation - recently received an NVIDIA DGX B...
17/12/2025
Editor's note: This post is part of Into the Omniverse, a series focused on ...
17/12/2025
With the new season of Dancing with the Stars shimmering in the not-too-distant future this New Year, the celebrity and dancer pairings of the twelve couples ha...
16/12/2025
Hawkins has landed on Spotify, just in time for Stranger Things Season 5, Volume...
16/12/2025
Wherever you are, your favorite music and audio content should go seamlessly with you. That's why Spotify has partnered with NAVER Corp, Korea's leading...
16/12/2025
2025 Wrapped arrived bigger and bolder than ever. This year's experience is designed to be ultra personal and shareable, with new features like Wrapped Part...
16/12/2025
Three 12-kilowatt Advanced Electric Propulsion System thrusters, supplied by L3Harris Technologies, form the core of Gateway's propulsion system. Pictured i...
16/12/2025
The challenge facing America's defense industrial base is not just about speed - its about rebuilding the foundation that makes speed possible. Our nations ...
16/12/2025
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
16/12/2025
SEVILLE, Spain Canal Sur, the public broadcasting service for Andalusia, Spain, has completed a total technology refresh based on Pebble's resilient, softwa...
16/12/2025
NEW YORK Teleprompting hardware provider Telescript International has acquired all software code and intellectual property previously owned by Telescript West. ...
16/12/2025
As cable operators face increased competition from 5G fixed wireless access providers, a new report from Ookla Research finds that T-Mobile is the FWA speed lea...
16/12/2025
Apple has announced a major upgrade to the Apple TV app for device owners outside the Apple ecosystem with news that the Apple TV app for Android now supports G...
16/12/2025
Space42 grows Direct-to-Device partner ecosystem through a Memorandum of Underst...
16/12/2025
16 Dec 2025
VEON Announces Release Date for Full Year and Fourth Quarter 2025 R...
16/12/2025
16 Dec 2025
VEON's Kyivstar Invests in Renewable Energy in Ukraine with Acq...
16/12/2025
Back to All News
Emma Appleton, Fares Fares, Frida Gustavsson and Jakob Oftebro...
16/12/2025
Back to All News
Docu-reality My Korean Boyfriend Gets a Trailer and Premiere D...
16/12/2025
Harmonic's XOS Advanced Media Processor Improves Streaming Video Quality and Boosts Viewer Engagement SAN JOSE, Calif. - Dec. 16, 2025 - Harmonic (NASDAQ: ...
16/12/2025
RT Sport Awards 2025 live on RT One and RT Player at 8:05pm on Saturday 20 December.
On Saturday 20 December live on RT One and RT Player at the earlier t...
16/12/2025
Singer -songwriter Brian Kennedy has been announced as the final celebrity dance...
15/12/2025
Harlem Globetrotters Celebrate 100th Anniversary With New Brand Campaign From Th...
15/12/2025
Top L-R: La Tierra Del Valor (The Home of the Brave), Mangittatuarjuk (The Gnawe...
15/12/2025
L3Harris will leverage 15 years of experience supporting the E-4B Nightwatch and...
15/12/2025
CONWAY, Ark. In a notable example of how the loss of federal funding is forcing public stations to make massive cuts and operational changes, the statewide pub...
NEW YORK - March 14, 2013 According to MetLife's 2013 Stable Value Study, released today, the vast majority (86%) of plan sponsors have been offering stable value as an investment option in their defined contribution (DC) plans for more than two years, and more than 78% are not planning to make changes to their stable value offerings within the next year. Among those plan sponsors that added stable value as an investment option in their DC plan in the past two years, 47% said they did so to provide participants with a capital preservation fund, 37% said stable value offers higher interest rates than other, comparable investments, and the same percentage said it was recommended by their recordkeeper/TPA.
