Pension Endgame Strategy

We employ a proactive approach to help pension plan sponsors.

Many pension plan sponsors with frozen plans are stuck on autopilot with service providers who aren’t helping get their plan to a state where they can successfully terminate. It doesn’t have to be this way. We employ a proactive approach to help pension plan sponsors understand their plan’s funded status on a plan termination basis, funded status risk, plan administration and compliance appropriateness, and data quality. Our analysis provides clear recommendations and a roadmap that is more than just “put more money in the plan.” We will build and implement a strategic plan so that the plan sponsor can easily navigate the termination process when the timing is right.

Standard Pension Endgame Analysis:

  • Funded Status – We will calculate the estimated cost to fully fund the plan for termination and the financial impact.
  • Funded Status Risk – We will review the current investment of the plan’s assets and determine the allocation between plan termination liability matching and return-seeking assets. We will also analyze/recommend potential risk transfer strategies.
  • Plan Administration – We will review various aspects of the plan’s administration to avoid any issues that come up during the plan termination process as part of an IRS or PBGC audit.
  • Data Quality – We will perform a detailed review of participant data, including the quality level of accrued benefits, addresses, and demographic information.

Plan Termination Advisory Services

  • Building a strategic plan to progress toward plan termination, including potential timeline, contribution levels, and desired asset returns.
  • Coordinating all aspects of plan termination preparation services, such as identifying to-dos to better prepare the plan for termination.
  • Recommending risk-transfer strategies (e.g., lump sum window, annuity purchase), as necessary, before complete plan termination to support progress toward goals (i.e., reducing costs, efficient plan management, attractive participant population for final annuity purchase).
  • Delivering monthly funded status dashboard on an economic liability basis.
  • Monitoring for milestones and recommended timing to begin the plan termination process.

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