How a Strategic De-Risking with October Three Enabled a Winery to Reduce Pension Liabilities and Cut PBGC Premiums
In this case study, we break down how October Three used proprietary analytics and competitive annuity bidding to help an American winery de-risk over 25% of its pension plan, saving $500,000 in premiums over five years.
Situation
An American winery with a well-funded pension plan explored plan termination but found it was not feasible at the time. While the plan was well funded, it did not meet the full requirements for termination, necessitating additional sponsor contributions—an option the winery could not pursue. As a result, the sponsor sought alternative strategies to reduce risk and manage future obligations.
Approach
October Three’s Annuity Services team coordinated bids from leading insurers, negotiated competitive pricing, and supported the sponsor in selecting a DOL 95-1 qualified insurer at a price closely matching October Three’s initial analysis and the plan actuary’s Project benefit Obligation calculation.
Results
The winery successfully de-risked over 25% of its pension plan liabilities. This strategic move reduced the plan’s ongoing PBGC premiums by $500,000 over the next five years for a total of over $2.5 million in savings, delivering substantial financial relief and greater long-term stability. The client enjoyed the annuity purchase so much that they also outsourced their actuarial and administration to October Three. What started as an annuity purchase evolved into a strong ongoing client for our Actuarial and Administration business lines.
Achieve Your Risk Management Goals
Pension risk transfer offers businesses a way to reduce financial risk, simplify administration, and focus on core business activities to improve financial position and operational efficiency. Schedule a quick call today to learn how October Three can help transfer your pension plan risk.