Sponsors of private sector defined benefit pension plans are looking to make accelerated voluntary contributions to plans in the wake of tax reform, according to multiple pension consultants.
Already, a number of large DB plan sponsors have announced increased voluntary contributions: FedEx, Lockheed Martin, Pfizer, and Harris Corp. are among them.
In slashing the corporate marginal tax rate to 21 percent from 35 percent, the tax bill is expected to motivate more contributions above the statutory minimum, as sponsors look to benefit from deducting contributions at the higher of the two rates.
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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.
