Unfunded pension liabilities are forcing many pension plan sponsors to look for alternative ways to manage their pension risk.
New industry regulations require companies to show their pension liabilities on their balance sheet. They also must contribute to their pension plans every year, which takes away money from their core businesses. This has forced many companies to look at different options to manage their risk and eventually terminate their defined benefit pension plans.
Prior to the Pension Protection Act of 2006, companies that terminated their pension plans did so because they were going through a merger or acquisition or were filing for bankruptcy. Now, "companies are looking to terminate their pension plans as a strategic risk management decision," said Jay Dinunzio, a senior consultant at Dietrich & Associates, a pension risk transfer firm.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.