The Pension Benefit Guaranty Corp. announced that it will require employers to report offers made to pension plan participants to convert their monthly annuities into cash lump sums.
The Federal Register carried the news earlier in the week that PBGC intends to revise 2015 PBGC premium filing procedures to include the new requirement. Such offers are usually made to employees who have left the workplace but are not yet drawing pension benefits.
In what has become an increasingly popular move, more and more companies are moving to derisk their pension plans. In fact, a survey last year from Towers Watson found that 75 percent of respondents said they were either working on derisking, were planning one or intended to do so by 2015. Half of the surveyed executives said that eliminating defined benefit plans from their companies' balance sheets was a priority.
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