Pacific Life announced the launch of Income Horizon™, a collective investment trust (CIT) series that lets defined contribution (DC) plan participants build guaranteed lifetime income before retirement. Structured through Matrix Trust Company—a Broadridge subsidiary that serves as the discretionary trustee—the series is positioned as a new, retirement‑income‑focused asset class for DC plans. By allocating a portion of ongoing contributions to “income units,” participants can steadily accrue a specific amount of guaranteed lifetime income, creating a clearer and more predictable path from savings to retirement. The product also promises liquidity and flexibility during the accumulation phase and includes protective options for the transition to income payments, addressing a growing demand for practical, scalable retirement‑income solutions.
Pacific Life Launches Income Horizon™ Collective Investment Trust Series
The Income Horizon™ series is a retirement‑income‑focused CIT designed to help DC participants accumulate guaranteed lifetime income by allocating a portion of ongoing contributions. The product uses “income units” that represent a specific amount of guaranteed lifetime income, providing participants with clearer expectations of future payouts. Pacific Life highlighted that the series offers liquidity and flexibility during the accumulation phase and includes options to protect savings when transitioning to income payments.
The series is enabled by Matrix Trust Company, which acts as the discretionary trustee and provides CIT governance, fiduciary oversight, and operational infrastructure. Availability is through the National Securities Clearing Corporation (NSCC), and plan sponsors and advisors can contact Pacific Life representatives for implementation details.
Market Context for Lifetime Income Solutions
Demand for retirement‑income solutions in DC plans has been rising, according to Karen Neeley, Head of the Institutional Retirement Solutions Group at Pacific Life. She noted that plan sponsors and advisors are seeking “more practical, scalable ways to help participants move from saving for retirement to generating income in retirement.” Christine Bass, Head of Defined Contribution Lifetime Income at Pacific Life, added that collective investment trusts are increasingly preferred in DC plans, and the Income Horizon CIT series is built to facilitate broad adoption within existing plan structures.
Joe Matarazzo, Head of Broadridge’s Retirement and Workplace Solutions, said the launch reflects “the kind of innovation the retirement market is increasingly seeking,” emphasizing the role of Matrix Trust Company’s governance and operational support in enabling scale.
Implications for Plan Sponsors and Advisors
Income Horizon™ introduces a deferred income annuity model within a CIT vehicle, allowing participants to see a defined amount of guaranteed lifetime income as they contribute. This contrasts with approaches that rely on projected income estimates, potentially offering participants greater precision in retirement planning. The product’s structure may simplify integration for providers across the DC ecosystem, as it is designed to be a “distinct asset class within existing plan structures,” according to Pacific Life.
The series’ reliance on the claims‑paying ability of Pacific Life’s issuing insurance companies means that guarantees are subject to those insurers’ financial strength. Product availability varies by state, and regulatory approval is required for specific features.
Key Takeaways
- Pacific Life launched Income Horizon™, a CIT series that lets DC participants build guaranteed lifetime income before retirement.
- The series is trust‑enabled by Matrix Trust Company, a Broadridge subsidiary, which provides fiduciary oversight and operational infrastructure.
- Income Horizon™ uses “income units” to represent a specific amount of guaranteed lifetime income, offering participants clearer expectations than estimate‑based approaches.
FinanceInsyte's Take
The Income Horizon™ CIT series adds a structured, guarantee‑based option for DC plan sponsors seeking to embed lifetime income as an asset class. While the product’s success will depend on adoption rates and regulatory clearances across states, its design may reduce complexity for advisors integrating income solutions. Executives should monitor participant uptake and any forthcoming guidance on state‑specific product features.
Source: Businesswire
