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A leading US-based manufacturer with over 70 years of history wanted to terminate its Defined Benefit pension plan. However, their existing provider relationship had become a source of frustration, marked by inconsistent guidance and growing internal friction.
At the same time, leadership had understandable concerns about trusting the execution of a plan termination to an unfamiliar firm.
After receiving a recommendation from their advisor to work with October Three, the Client scheduled a first meeting and conducted their own independent research. What stood out the most to the Client was October Three’s team, who projected flexibility, responsiveness, and a confident, solution-oriented approach.
Just as important, the urgency to move away from a difficult incumbent provider created momentum for change, and October Three demonstrated they could lead that transition effectively.
October Three partnered closely with the Client, guiding them through each step of the termination process.
Key elements of the engagement included:
Clear project management with strict adherence to timelines
Hands-on guidance through complex processes, including QDRO handling
Continuous problem-solving to address unexpected challenges without disruption
Persistent follow-up to ensure nothing stalled, even when internal responsiveness lagged
Rather than placing the burden on the client, October Three drove the process forward to create a significantly easier termination experience.
October Three’s approach produced the following results for the Client:
Financial Impact
By reassessing the Client’s pension funding requirements, the October Three team determined that prior contributions had significantly exceeded what was necessary, resulting in millions of dollars in restricted excess assets that the Client could not access. By clarifying contributions, the October Three team freed up substantial cash flow for the Client.
Operational Relief
By transitioning away from a difficult provider, the Client eliminated ongoing friction and administrative burden. The result was a smoother, more predictable experience for their internal team.
Best-in-Class Execution
Even highly complex elements of the project were handled seamlessly. The client noted achieving the highest lump sum take rate they had ever seen, crediting October Three’s coaching and strategy.
The Client consistently described the engagement as exceptional, noting, “Nothing was a problem,” and “Challenges became non-issues.” The October Three team’s positive energy, responsiveness, and confidence stood out throughout the project, exceeding the Client’s expectations for a partner.
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.