Merrill teams with MetLife to offer annuity product; Group option geared for ERISA plans.(News)

Investment News, August, 2004

Byline: Phyllis Feinberg

NEW YORK - The retirement group of Merrill Lynch & Co. Inc. in New York has joined with Metropolitan Life Insurance Co. to bring 401(k) plan participants a fixed, deferred group annuity investment option.

While New York-based MetLife offers the Personal Pension Builder to employers on a voluntary after-tax basis, Merrill designed its product so that it is eligible under the Employee Retirement Income Security Act and can be funded with pretax dollars put into a 401(k) account.

"The biggest challenge we had was designing a product that would fit within ERISA,'' said Ron Albahary, chief investment officer of Merrill's retirement group. "Employers can include [Personal Pension Builder] as another investment option...

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