US. How United Technologies created ‘the retirement plan of tomorrow’
United Technologies Corporation was ahead of its time when it came to employee retirement benefits.
The Fortune 500 company — the parent to Otis, Pratt & Whitney, UTC Aerospace Systems and UTC Climate, Controls & Security— made a point of offering its employees an in-plan guarantee of retirement income well before the topic of lifetime guarantees in 401(k) plans took center stage in the national discussion.
Five years ago, the company decided to revamp its retirement plan, and worked with Prudential Retirement to offer an in-plan retirement income solution to its employees. Now it’s hoping its success story will act as an example to other companies that can’t afford to offer pension plans, but would still like to see their employees have a stable retirement.
Kevin Hanney, senior director, pension investments, for United Technologies, started with the company in mid-2005. At the time, UTC already had a relationship with Prudential. Hanney told the company’s Prudential representative at the time that he was happy with the retirement plan the company had, but was interested in ideas that would help develop the “retirement plan of tomorrow.”
Full Content: Benefit News
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