PBGC Methods: Think Before You Switch

PBGC Methods: Think Before You Switch

Pension plan sponsors have less than eight weeks to re-visit a 2019 cost-reduction decision that could end up coming back to bite them in 2020. PBGC premiums for 2019 are coming due soon, and there are two options to determine the interest rate used when calculating a...
Roadblock Removed Allowing for Retiree Lump Sums

Roadblock Removed Allowing for Retiree Lump Sums

The IRS has given plan sponsors the green light to move forward with offering lump sums to defined benefit plan retirees or other participants who are “in pay status”, receiving monthly checks. Or perhaps it’s more accurate to say that they’ve removed the Stop sign....
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...