Among the many effects on corporate finance from the Tax Cuts and Jobs Act is a greater motivation to address problems with defined-benefit (DB) employee pension plans. Thanks also to the savings from a lower corporate tax rate for 2018, senior finance executives think that this year may be an opportune time to reduce the liability risks associated with their companies’ DB pensions.
Those were among the important findings of a recent CFO Research study on how the new tax law is influencing a range of pension-related decisions.
The online survey, conducted in collaboration with Prudential Financial, drew 127 responses from finance executives whose companies have DB plans for current or former employees. This is the eighth consecutive year Prudential has surveyed CFOs on pension issues.