Strategies to help manage pension plan liabilities
The volatility and unpredictability of pension plan liabilities are a concern for many organizations. Once a cornerstone of many employer benefit packages, mounting administrative costs, and rising life expectancies are making defined benefit (DB) plans increasingly challenging to maintain. Buck’s pension risk consultants work to understand all verticals of your business in order to formulate a strategic plan to minimize risk associated with pension management.
Terminating a frozen defined benefit DB plan or embarking on de-risking strategies isn’t easy and important considerations include timing and the plan’s funded status. Do you have enough cash on hand to cover the plan termination liabilities, or will you need to make a significant cash contribution? If a plan termination is not feasible, should you consider a lump sum window or a group annuity purchase?
As you consider your options, it’s important to evaluate which strategy makes most sense. With more than 100 years of experience helping organizations manage their DB pension plans, we know what works. Our actuaries, investment consultants, and pension risk team can provide a true one-stop shop to help you understand, measure, and take action on pension risk.