Pension risk transfer sales continue to break records, as the market grew another $6.3 billion in the first quarter of 2023. If you’ve been contemplating de-risking your defined benefit pension plan, the time may be right to develop a successful strategy.
Take advantage of current market conditions, which are incredibly favorable for any de-risking activity related to the recent increase in rates. Pension plan sponsors can benefit from an integrated team of experienced actuarial consultants and investment advisors who work together to achieve corporate plan objectives while optimizing funded status variability.
Organizations that have a hands-on approach to pension plan administration may actually have their hands full. Outsourcing offers the confidence in knowing your plan is being administered accurately, efficiently and cost-effectively.
Pension risk transfer, or de-risking, continues to be popular, and today’s interest rate environment makes it more cost-effective to de-risk. Identifying and implementing a de-risking approach that matches your organization’s objectives can mitigate and reduce pension plan risk.
Your pension plan’s improved funding status is now face-to-face with market volatility, geopolitical uncertainty and hints of a recession. If you’ve been contemplating de-risking your defined benefit pension plan, the time may be right to develop a successful pension risk transfer strategy.
If a single employer overfunded pension plan is terminating and its participants and beneficiaries are on track to receive full benefits, the plan sponsor will likely ask if the excess is theirs. In other words, will the surplus revert to the plan sponsor? The answer is maybe.