White Papers

Variable Annuity Pension Plans – Part 3

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 to some of the hybrid plan regulations – but this is not always the case. While these plans have been around for a long time, they have not been widely adopted until recently. The increased attention to these plans has been driven by their ability to mitigate risks and share risks between the contributing employer and the covered participants.

In this type of plan, the accrued benefit will increase or decrease based on the investment performance of the plan. This paper will discuss the mechanics of how this plan works as well as the pros and cons of the plan design. We will also discuss a variety of plan options that can be

Here is Part 3

Part 3 – Variable Annuity Pension Plans

Rich Hudson

Recent Posts

Traditional DB Plan Designs – Part 2

These plans have been around for a long time, but are now being viewed negatively…

3 years ago

Managing Risks in Retirement Plans – Part 1

Defined benefit (DB) pension plans have many risks and, unfortunately, these risks are not always…

3 years ago

PBGC Interim Final Rules Summary 2021

Special Financial Assistance Guidance Issued by the PBGC Background The PBGC administers a Multiemployer Insurance…

4 years ago

ARP Act – Single Employer Pension Plan Relief

“Fresh Start” and Extended Amortization Funding Shortfalls The Act provides a “fresh start” on the…

4 years ago

ARP Act – Multiemployer Pension Plan Relief

Financial Assistance for Severely Underfunded Multiemployer Plans The Act creates a special financial assistance program…

4 years ago

Variable / Adjustable Pension Plans

This white paper discusses a couple of new adjustable pension plan designs available to plan…

5 years ago