We recently discussed 5 strategies to consider prior to terminating your Defined Benefit Plan. However, in certain cases, terminating your plan will ultimately remove long-term risk and improve your organization's financial profile. A well though out strategy is essential to terminating a Defined Benefit Plan. Plan sponsors need to take into consideration plan funding, employee payouts, time line, termination options, labor agreements and company goals.
The following timeline shows the Defined Benefit Plan Termination Process:
Having the right partner guide you through the process can reduce workload and risk, ensure confidence, and bring clarity to the process. If you have questions regarding Defined Benefit Plans or the termination process, contact Linda Lauer, Managing Director and Employee Benefit Plan Specialist, at email@example.com or 901.685.5575.