O3 Insights

Plain talk about cash balance plans

In this article we discuss the risks to plan sponsors presented by a "traditional" cash balance plan -- that is, a plan that provides interest credits based on an IRS-approved fixed income yield. Read More

Freezing Your Pension May Not Be The Best Option

For a variety of reasons, many sponsors of defined benefit (DB) plans have decided to freeze their plans in favor of new or expanded defined contribution (DC) plans. Others are considering this strategy. One of the common causes for going this route has been rising and volatile cash and accounting costs and liabilities. The hope is that eventually the DB plan will be terminated – when interest rates rise sufficiently so that the cost of paying lump sums and purchasing annuities will become more favorable. Read More

Plain Talk about Risk -- To the Company

By sponsoring a retirement plan, a company may assume a variety of risks in exchange for benefits it hopes to gain for its business, such as a more productive workforce. For purposes of this discussion, a “risk” is the potential that an outcome will be different from its “expected” value and have negative consequences. Differences that might be favorable over the long-term might nevertheless produce short-term adverse consequences. Read More

11-13 of 13<  1  2  3  >
Share this with your Colleagues:

Latest News:

  • Budget deal retirement savings provisions - Read More
  • January 2018 Pension Finance Update - Read More
  • DB funding and 2017 tax planning - Read More
  • PBGC finalizes regulation revising missing participant program - Read More
  • Current outlook – 2017 year in review - Read More
  • Cash Balance Plan Design - Read More
  • ReDefined Benefit Plan™ - Read More