Pension Plan Termination Strategy
A manufacturing company was the plan sponsor for three defined benefit pension plans that had become financially burdensome in terms of cash contributions and the on-going administrative fees. The prevailing attitude of the Retirement Committee was to terminate the plans as quickly as possible.
The issue was that the Retirement Committee had little understanding of the pension plan termination process as well as the complexities of terminating a pension plan. Our client contact wanted to develop a strategy for terminating the plans as well as assessing the feasibility of doing so.