This is another type of defined benefit plan that provides lifetime income to the participants of the plan. Some have called these hybrid plans but they are not considered hybrid plans under the IRS regulations. In some cases, if the hurdle rate is set low enough, the plans are subject Read more
These plans have been around for a long time, but are now being viewed negatively by employers. Much of that is due to not being aware of how to best manage the growing risks inherent in these plans. Without proper modeling, it is difficult to take proper action and mitigate Read more
Defined benefit (DB) pension plans have many risks and, unfortunately, these risks are not always addressed and managed appropriately. In some cases, plan sponsors move to defined contribution (DC) plans as they feel these are risk-free but there is no such thing as a risk-free plan. It comes down to Read more
This white paper discusses a couple of new adjustable pension plan designs available to plan sponsors and the rationale for why they should be considered. · For years employers contributing to Defined Benefit Pension Plans have been wary of the risks associated with these plans.· With the national move Read more