Lump-Sum Window Services

Make the best decision for your company

Offering a lump-sum window to plan participants might be the right decision for your company. However, this process takes time and should be implemented with discretion.

Our experts will guide you through the entire lump-sum window process. We know that offering a lump sum window to employees isn’t a one-size-fits all process, which is why we tailor our services to meet your company’s specific needs.

Our services

Whether you’re looking to achieve greater flexibility and control over your retirement liabilities, enable employees to customize their retirement income strategy or better mitigate long-term pension plan risks, our comprehensive lump-sum window services can help.

Initial assessment

By conducting an initial assessment of your company’s pension plan, we’ll evaluate specific features, funding status and the potential impact of offering a lump-sum window payout.

Risk management

Financial modeling

We’ll use sophisticated financial modeling techniques to simulate the impact of implementing a lump-sum window payout on your plan's financials, including the funding level, cash flow projections and potential future obligations.

Participant communications

Effective participant communication is crucial when implementing a lump-sum window payout. We can assist in developing clear and informative communication materials to educate plan participants about the option, its benefits, potential risks and any associated considerations.

Lump-sum calculation

We’ll calculate lump-sum amounts for your eligible participants based on actuarial principles, plan rules and participant-specific factors such as age, years of service and projected life expectancy. These calculations ensure that the lump-sum payouts are fair and accurately reflect the value of your participants' benefits.

Monitoring and review

After implementing the lump-sum window payout, we can help your business monitor the impact and effectiveness of the program. We’ll provide ongoing analysis, evaluate the outcomes and suggest adjustments or refinements as needed.

How it works

Phase 1: Initial announcement

light bulb Clear and thoughtful communication is crucial for participants to understand their choices and what they mean — it’s also the key to achieving a higher "take rate" and a more profitable lump sum project. In this phase, we create announcement letters that can be sent via email or postal service and include information about accrued benefits, annuity options, and next steps.

Phase 2: Calculation

light bulb Next, we determine the dollar amount of each participant’s lump sum. Once we receive the necessary participant and plan documentation, we can calculate initial accrued benefits, accrued benefits after changes in data, the participant qualified domestic relations order (QDRO), alternate payee options and survivor benefits.

Phase 3: Lump sum window execution

light bulb Our main priority is ensuring that participants receive their payments. After verifying and auditing the elected benefits, we can ensure the payment instruction is sent to the paying agent, lump sum and annuity elections are transmitted, and payments are reconciled.

Phase 4: Ongoing support

light bulb Our job doesn’t stop here – we offer continuous support even after the lump sum window process is complete. Our team of dedicated pension experts are on call to answer questions about benefits, provide support in collecting and mailing election kits, and communicate with participants.

How much does a lump-sum window payout cost?

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Lump sum window FAQs

What are the benefits of offering a lump-sum payout option to employees?


How can October Three assist in implementing a lump-sum payout option?


Are there any legal considerations or compliance requirements associated with offering lump-sum payouts?


How will you determine the appropriate lump-sum amount for my company and employees?


Can you assist with employee education and communication about the lump-sum option?


Are there any risks associated with offering lump-sum payouts?


Can you provide ongoing administration and support after implementing lump sum payouts?


How will offering a lump-sum payout option affect my company's overall pension plan liabilities?


What considerations should we keep in mind when considering lump-sum payouts?


How long does it take to implement a lump-sum payout option?


Ready to get started?

Implementing a comprehensive lump-sum window payout is a time-intensive and sensitive process. Our expert actuaries help you achieve your goals with maximum efficiency while eliminating volatility concerns.

Reach out to schedule a meeting about a lump-sum window solution tailored to your business and employees.