Top Three Ways Pension Risk Transfer is Lowering Plan Costs
If you’ve been looking for ways to lower your plan costs, annuitizing could be the right move. Pension Risk Transfer not only transfers liability, but also lowers the costs you pay on your plan.
Plan Administration Fees
The larger your plan’s participant population, the greater your already costly administration fees can be. Companies are finding significant savings in the reduced administrative costs that follow the population decrease of participant transfer.
Plan Liabilities
Transferring plan liabilities through annuitization decreases overall plan liability by reducing the size of your plan and lowering plan risk. U.S. pension plans are currently at the highest rate of funding since the financial crisis, and the higher your plan’s funding, the more affordable it should be to annuitize.
PBGC Premiums
The PBGC premiums you pay are directly dependent upon the headcount of your plan. We know that PBGC premiums will continue to increase but transferring participants to an insurer offers the opportunity to reduce your premiums by reducing your plan’s size.
Pension Risk Transfer is helping companies to save on administrative fees, reduce liabilities, and cut PBGC premium costs. If you’ve thought about annuitizing, learn what to look for when selecting an annuity provider, and contact us to get started.
