O'Reilly logo

Retirement Savings Policy by Michael P. Barry

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 9 Getting Out, Slowly

Throughout the 2000s, as interest rates steadily declined, and DB plan sponsors were forced to recognize on their financial statements significant “losses” on their plans’ liability portfolio, they began to look for the most efficient way out.

We begin our discussion of the challenge of getting out of the DB system with the somewhat counterintuitive fact that it actually costs more to terminate a DB plan than it costs to run one.

The Increased Cost of Plan Termination

Generally, to terminate a DB plan, and exit the DB system, annuities must be purchased from an insurance carrier and distributed to all participants and beneficiaries in the amount of their benefits under the plan. If the plan permits lump sum distributions, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required