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A major real estate development firm faced the challenge of terminating two complex pension plans involving 575 participants and $41 million in assets. Burdened by legacy plan formulas, merged structures, and a difficult annuity market, especially for variable annuities, the firm sought a partner with the expertise to navigate complexity and deliver results.
After receiving a $1 million quote paired with subpar service from a leading competitor, the client turned to a more strategic, client-focused provider.
A cross-functional team was quickly assembled to manage the entire plan termination process. The team hosted targeted participant information sessions, negotiated proactively with insurers to secure rare coverage, and successfully challenged final bids to drive down costs.
The results spoke for themselves. The client received full services for approximately $400,000, realizing over $600,000 in administrative savings. Additionally, through expert negotiation, the annuity purchase price was reduced by more than $700,000.
The lump sum window saw a 60% take rate, signaling strong engagement and satisfaction among participants. Despite the complexity of the plans, both terminations were completed on time, earning high praise from the client and their advisors for the experience and outcomes.
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.