Many businesses are trying to determine the best way to handle outdated or frozen defined benefit plans. The goal is two-fold: remove your risk while staying committed to your employees’ retirement benefits. We’ll help you achieve both.
Retirement planning and longevity have changed — your business shouldn’t be held hostage by past commitments
Running out of money isn’t an option — take action to give employees confidence in their future retirement payments
Stop carrying a risk year after year — get off the funding roller coaster with an effective pension risk transfer solution
Transferring your plan to a group annuity product allows you to step away from your pension knowing that all obligations have been met and you are leaving your current and past employees in secure hands.
We’re dedicated to helping you understand the different solutions and choose the right one for your situation. Backed by a partnership with a national consulting firm, we:
- Provide financial insights on the realities of your plan
- Analyze various scenarios for termination liability
- Handle all the actuarial requirements
- Process final benefit calculations
- Transfer obligations to an insurer and terminate the existing plan
- Get approvals from the Pension Benefit Guaranty Corporation (PBGC) and the IRS
- Complete all government and legal filings
- Ensure participant payments are processed correctly
- Facilitate mailings and education to assist participants with benefits
While any plan is worth discussing, our specialty lies in plans with less than $500M in assets. This allows us to take time to understand your business and the underlying forces of your existing plan.
For companies with plans of this size, our end-to-end services can save plan sponsors millions of dollars — all while providing better outcomes for plan participants. And we keep it simple, reporting everything in a way you, your pension committee or your board will understand.
Terminating a defined benefit plan is complex. Let us be your partner to get it done right.
Troublesome pension plans are a drag on your company’s prosperity. But terminating a defined benefit plan is a complex undertaking and can pose potential legal and compliance pitfalls. Ash specializes in plan terminations and can guide you through what is otherwise a vague de-risking process.
Implement delivery changes, funding strategies or settlements with proven results
Improve the overall financial health of your business by transferring pension risk
We’ll help plan sponsors make informed decisions through education and insight
Rising costs, increased regulation and market volatility may prompt defined benefit plan sponsors to ask, “How can we … ?” We'll find the answer and deliver a solution that meets the needs of your organization.
We can provide you with the options you need to significantly reduce the size of your pension plan or completely remove pension liability from your business. Contact Steve Pilger to understand your options and dispel any misconceptions you might have.
You may be surprised to know some liability-reducing activities don’t require any additional funding. The economic cost of retaining defined benefit plan risk is comparable to transferring it to an insurer. There are numerous options available and we fit the proper solution to your participant population.
The answer lies in the approach. We provide an in-depth analysis of your plan that shows every option available to de-risk the plan including your true cost to exit the plan, a number that most plan sponsors have never seen. Our clients have eliminated their pension obligations with a positive impact on the value of their business.
It's never too late. However, expensive pension plans have been creating financial havoc for years. Volatile balance sheet liabilities, market performance, increased government fees, high professional fees and looming required pension contributions all equate to a risky future.
Yes! There are solutions available for plans of all funding levels.
In a 2014 white paper " Reducing Pension Risk: The Five Myths Holding Back Plan Sponsors", Prudential found that defined benefit plan obligations are placing constraints on company performance. Transferring a plan’s investment, longevity and expense risks will enhance a company's bottom line, which can ultimately lead to gains for shareholders.
Many plan sponsors intend to adopt LDI strategies, but fail to implement them.