RIGs include which items under SOA/SCL?

RIGs include which items under SOA/SCL?

• A. Systematic withdrawal plan (SWP)
• B. Guaranteed lifetime annuities through insurance
• C. Temp payout from plan assets that delays Social Security
• D. All of the above

Answer: (D)

RIGs are retirement-income guarantees that can be delivered in several ways within a plan to ensure income across different needs. One way is a systematic withdrawal plan, which provides a steady, regular stream of distributions from plan assets to support ongoing cash flow and help manage market risk. Another approach is a guaranteed lifetime annuity purchased with plan assets; this converts a lump sum into a steady income for life, protecting the retiree from longevity risk. A third method is a temporary payout from plan assets designed to bridge the gap while delaying Social Security, allowing the participant to maximize future Social Security benefits. Under the SOA/SCL framework, these options are all considered parts of Retirement Income Guarantees because each one serves to guarantee or bridge income in retirement. Therefore, the best answer is all of the above, since each item represents a distinct mechanism that can be included as a RIG.

RIGs are retirement-income guarantees that can be delivered in several ways within a plan to ensure income across different needs. One way is a systematic withdrawal plan, which provides a steady, regular stream of distributions from plan assets to support ongoing cash flow and help manage market risk. Another approach is a guaranteed lifetime annuity purchased with plan assets; this converts a lump sum into a steady income for life, protecting the retiree from longevity risk. A third method is a temporary payout from plan assets designed to bridge the gap while delaying Social Security, allowing the participant to maximize future Social Security benefits.

Under the SOA/SCL framework, these options are all considered parts of Retirement Income Guarantees because each one serves to guarantee or bridge income in retirement. Therefore, the best answer is all of the above, since each item represents a distinct mechanism that can be included as a RIG.