Pension Plan Termination

Helping you successfully navigate.

Our focus is helping you successfully navigate the defined benefit plan termination process. We do this by streamlining the implementation process, avoiding pitfalls, maximizing potential savings, and bringing your plan to a successful end. You also benefit from our combined actuarial and investment management expertise.

You have full access to the expertise we bring through our thorough understanding of the specific requirements of implementing a defined benefit plan termination. Our consultative approach to managing the liability and asset sides of the funded status equation is essential to making the right decisions at the right times. Our expertise has helped numerous pension plan sponsors successfully navigate the entire plan termination journey.

Standard Pension Plan Termination Services:

  • Preparation – Preparing for a successful plan termination takes time and effort. Find out how prepared you are to start your termination journey through our Termination Readiness Assessment. Our team of experts analyzes your entire plan within four critical areas and provides clear recommendations to help sponsors successfully terminate their plans.
  • Implementation – It is crucial to complete all your regulatory filings, participant notices, and numerous deadlines correctly and on time. We estimate the range of contributions needed to terminate the plan under various critical assumption scenarios. We implement liability hedging investment strategies to mitigate interest rate risk and avoid requiring a more significant contribution to fully fund. We update the investment strategy throughout the termination process to reflect changes in the liability duration and interest rate exposure, especially through the benefit distribution phase.
  • Distribution – After the implementation process, participants can receive distributions. Typically, not-in-pay participants receive the option for a one-time lump sum payment during a limited window. Communicating the benefit options to participants and streamlining the election process is vital to a successful window. In-pay retirees and not-in-pay participants who don’t choose a one-time lump sum payment will join the final annuity placement. Agilis implements an efficient and cost-effective bid process and provides robust due diligence on bidding insurers, as selecting an insurer who will pay annuities is a critical fiduciary decision.

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