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Funding agreements
Helping organizations meet future commitments
Retirement financial professionals are increasingly asked to help clients think beyond traditional retirement plans. Funding future obligations is an important part of an organization's overall financial strategy.
Overview
Funding agreements are straightforward, general account investment contracts that provide institutional investors with customizable funding support, predictable growth and guarantees backed by the financial strength of an established insurance company.
Typical uses
A funding agreement is typically used to grow assets for known future obligations, such as:
- Funding nonqualified deferred compensation plans
- Supporting executive benefit programs
- Reducing volatility in assets designated for future liabilities
- Aligning funding assets with predictable future payment schedules
- Providing short- and intermediate-term asset growth for a defined period
How clients benefit
Details
Funding
- Lump sum deposit
- Minimum: $500,0001
Maturity
- 1-10 years
- Lump sum payout
- Scheduled installment payouts
Crediting method
- Fixed net rate
Benefits
- Stable crediting rates
- Principal preservation
- Flexible terms and distribution schedules
- Predictable liability financing
- Simple administration
- Insurance-company guarantees
- Long-duration accumulation
Uses
- Qualified or non-qualified plans
- Trusts
- Foundations
- Supplemental executive retirement
- Restoring benefits limited by qualified-plan caps
- Executive savings plans
Termination
- Early termination available with prior written notice as stated in the contract
- Market Value Adjustment (MVA) may apply2
Availability
- Approved for sale in AL, AR, CT, HI, IA, ID, KS, LA, ME, MI, MO, MT, NC, ND, NE, NH, NM, NV, OH, OK, PA, RI, SC, TX, UT, WI, WV, WY
- Not available in NY. AK, OR and WA do not allow funding agreements.
- Approval pending in remaining states
- Subject to state-specific regulations.
- Does not allow Market Value Adjustment below the initial principal.
Contact me
Insights and materials
Funding Agreements, Nonqualified Plans
The hidden balance sheet
For many organizations, the 401(k) plan is one of the most visible components of their employee benefits strategy. It is also where many relationships between employers and retirement consultants begin. But while retirement plans are an important part of an organization's financial picture, they are rarely the whole picture.
Funding Agreements, Nonqualified Plans
Rethinking traditional NQDC funding
As organizations compete for executive talent, nonqualified deferred compensation (NQDC) plans have become increasingly important. The key question is not whether to fund these obligations, but what funding strategy best supports the organization's long-term objectives.
Our team and approach
The options we offer in our funding agreements give us the flexibility to effectively meet the needs of clients looking for secure funding for future obligations.
Jordan Gronli
Actuarial Senior Consultant, Institutional Retirement Solutions
Invested in the industry
Securian Financial proudly sponsors these important stable value industry groups.
All from a company known for its financial strength
Securian Financial has been providing solutions and protecting families for more than 140 years. Our mutual holding company structure means we’re not under pressure to deliver short-term returns. Instead, we focus our energy on serving customers’ long-term needs.
See our strengthAssociates shown are Securian Financial employees, and thus have a financial connection to Securian Financial. Their statements were given freely.
DOFU 9-2026
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