Next Steps After an Annuity Purchase

Next Steps After an Annuity Purchase

You’ve just completed an annuity purchase for your pension plan. Congratulations, you reduced your plan’s risks (e.g. investment, regulatory, mortality, discount rate risks) and significantly saved PBGC premiums and administrative expenses! The contracts have been...
Mortality: Back to Where We Started

Mortality: Back to Where We Started

Second only to the discount rate, the mortality assumption is the biggest driver of the pension liability on plans sponsors’ balance sheets. New mortality tables issued in 2014 reflected the substantial improvements in US mortality during the previous few decades and...
Is Your Defined Benefit Plan Ready for Termination? Part V

Is Your Defined Benefit Plan Ready for Termination? Part V

Part 5 – Data Quality and Conclusion This post is the last in a 5-part series on plan termination readiness. In prior weeks, we discussed funded status [Part II and Part III] and plan administration [Part IV]. This week, we’ll wrap things up with a discussion of data...
Is Your Defined Benefit Plan Ready for Termination? Part IV

Is Your Defined Benefit Plan Ready for Termination? Part IV

Part 4 – Plan Administration This post is the fourth in a series on plan termination readiness. Previously, we discussed both the level and the risk of the plan’s funded status. This week, we’ll be focusing on plan administration. Before starting a plan...
Is Your Defined Benefit Plan Ready for Termination? Part III

Is Your Defined Benefit Plan Ready for Termination? Part III

Part 3 – Funded Status Risk This post is the third in a series on plan termination readiness. Last week, we discussed the plan’s funded status. This week, we’ll be focusing on the risk of changes in funded status. A plan’s funded status is subject to interest...
Is Your Defined Benefit Plan Ready for Termination? Part II

Is Your Defined Benefit Plan Ready for Termination? Part II

Part 2 – Funded Status In last week’s post, we started with an overview of four areas pension plan sponsors need to understand about the plan termination process. This week, we will be going deeper on the first of these four areas: the ultimate cost of...