RIVE uses the plan sponsor’s funding criteria to create a custom Private Credit portfolio consisting of traditional fixed income and life insurance. The pension purchases the Private Credit portfolio. RIVE then separates the life insurance into assets (Face Value Strip) and liabilities (Premium Strip). The plan sponsor then assumes some or all of the liabilities (Premium Strip), which instantly increases the funded ratio
RIVE’s patented Private Funding™ enables plan sponsors to lower costs and customize cash flows.
Plan Sponsor Benefits
- Customized funding
- No credit rating
- No new municipal bonds
- Lower cost than municipal bonds
- Instantly higher funded ratio