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A Washington-based winery with 1,600 defined benefit plan participants was facing rising pension costs and growing uncertainty around long-term plan management. Seeking to reduce risk and administrative strain, the company turned to a strategic partner for solutions.
Through a comprehensive actuarial review, the team identified key opportunities to reduce costs via de-risking strategies. These insights enabled the winery to move forward with confidence, supported by a clear financial strategy.
The execution was seamless. A well-managed lump sum window and a competitive retiree annuity purchase helped streamline the process, while the call center handled 787 participant inquiries, easing the internal workload and ensuring a smooth participant experience. The team also negotiated a $660,000 reduction on the final annuity bid, directly enhancing the client's bottom line.
By reducing pension liabilities and administrative overhead, the winery significantly improved plan sustainability while freeing up resources to reinvest in its core business. The results were substantial:
342 participants (42%) elected lump sums, totaling $30.4 million and exceeding expectations
Approximately $500,000 in annual savings from the lump sum window, including $300,000 in PBGC premium reductions
An additional $300,000/year saved through annuity-driven PBGC reductions
The total projected annual savings were approximately $800,000.
October Three offers full-service actuarial support, covering everything you need to manage your plan efficiently. Call our team today to learn how our actuarial services can help mitigate risks associated with your retirement plans.