More than 90% of U.S. corporations with defined benefit plans that have derisking goals plan to transfer all their liabilities in an average of just under four years, according to a new poll conducted by MetLife.

In the insurer’s 2024 Pension Risk Transfer Poll, 93% of respondents said they intend to completely offload all of their pension liabilities, up from 89% that expressed that sentiment a year ago. Among that population, they plan to do so in an average of 3.8 years, a quicker timeline than the average of 4.1 years in 2023.

Also, 93% of respondents said they are weighing the DB plan’s value as a tool to attract and retain talent against the cost of the benefit (down from 94% in 2023), and 90% say the pension plan is receiving “significant attention” from company management (down from 91% in 2023).

When asked for multiple catalysts that can initiate a pension risk transfer to an insurer, the highest response — 47% — said rising interest rates, followed by 45% saying rising inflation, and 44% saying market volatility. In 2023, rising inflation elicited the highest response among survey respondents, with 49% citing it as a primary catalyst for moving forward with a PRT transaction.

Also in the 2024 poll, 34% of respondents noted an increase in the number of retirees and 32% each cited consultant recommendations and recessionary concerns.

“As the poll and other market data indicates, the pension risk transfer market continues its bullish growth and will likely continue to remain strong in the near future,” said Elizabeth Walsh, vice president, U.S. pensions, MetLife, in an Oct. 8 news release.

“As a market leader focused on service, MetLife has seen this activity firsthand, including several transactions with the same clients as they continue to derisk in tranches, focusing on specific participant populations,” she said.

Among respondents seeking to complete a pension buyout, 68% said they plan to do so via retiree liftout — just transferring a portion of the liabilities — while 26% said they plan to do so through a complete plan termination, with another 6% saying they are unsure or don’t know.

MetLife polled executives at 250 corporations with defined benefit plan assets of $100 million or more between July 16 and July 31.

Read more @pionline