How MetLife Funding Agreements Work

Jun 2024

Funding agreements are general account investment contracts that provide a guarantee of principal and accumulated interest. Contracts can be individually negotiated with specific terms tailored for each institutional investor’s needs.^1,2

Flexibility Offered by Funding Agreements

Plan sponsors have a range of options with funding agreements.

Guarantee of principal and interest³
May be funded by the purchaser with either a lump sum payment or installment payments
Minimum contract size = $1,000,000
Choice of maturities:
Rolling maturities — floating rate, reset quarterly and typically against a pre-determined index
Fixed maturities 1 to 10 years
Payout at maturity — either a single lump sum or scheduled installment payments

Benefits to Plan Sponsors and Participants

Strong financial strength ratings
Guarantee of principal and interest³
Attractive yields
Predictable returns
Customization
Can be matched to specific liabilities

Typical Funding Agreement Uses

Health Savings Accounts (HSA)
529 Plans
Construction financing
Fund expenses
Money market funds
Securities lending cash collateral portfolios
Municipalities, government pools
Short-term investment funds
Corporate cash pools
Nuclear decommissioning trusts
Foundations and endowments
Financial institutions

To learn more about our stable value solutions please contact our team at (833) 948-2275

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¹Funding agreements are generally pre-approved in the state of issue. They generally require filing and approval by the relevant state insurance regulator before a contract can be issued.

² Funding agreements may not be available in all jurisdictions. In addition, they are backed solely by the financial strength of the issuing company.

³ Guarantees are subject to the financial strength and claims-paying ability of the issuing MetLife company.

Group annuity contracts are issued by one of the following MetLife, Inc. companies: Metropolitan Life Insurance Company, New York NY; and Metropolitan Tower Life Insurance Company, Lincoln, NE; and are distributed by MetLife Investors Distribution Company (“MLIDC”) (member FINRA). All are MetLife companies. Like most group annuity contracts, MetLife group annuities contain certain limitations, exclusions and terms for keeping them in force. Ask a MetLife representative for costs and complete details.