Pension Plan Terminations

Home » Group Annuity Products » Pension Plan Terminations

401k plans have replaced defined benefit pension plans as the primary retirement plan structure for many employers. This has been a trend for the past several decades due to regulatory, accounting and funding requirements imposed on defined benefit plans.

Typically the first step toward plan termination involves freezing plan benefit accruals. Once benefits have been frozen future service costs are eliminated, however, continuing plan financial and longevity risks remain. To fully mitigate these risks and ongoing administrative costs plan sponsors can elect to annuitize plan benefit obligations utilizing a single premium group annuity contract known as a terminal funding contract.

Over the past 35+ years we have placed more than 2,000 single premium group annuity contracts guaranteeing retirement benefits for more than 300,000 participants.

Click here to speak with a retirement plan expert.