Not too long ago, sponsors of defined benefit plans regardedpremium payments to the Pension Benefit Guaranty Corp. like a trip tothe dentist — a required nuisance.

“The tendency was to take a compliance mindset to PBGC premiumsand pension plan funding,” says Brian Donohue, a partner andactuary at Chicago-based pension consultancy October Three.

In other words, premium payments were seen as a necessary costof doing business for employers offering defined benefit plans — dowhat you have to do to pay what has to be paid and get the problemoff sponsors’ desks until the next round of premiums are owed.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.