PLANSPONSOR – Considering Balance Sheet Issues for Pension Risk Transfers

In a DB plan termination, the common forms of distributions are lump-sum window offerings and the purchase of an annuity to transfer assets to an insurance company. The hit to a company’s balance sheet from lump-sum distributions depends on the interest rate used to calculate them and plan provisions, but an annuity purchase will be a bigger hit, according to Tom Swain with Findley.

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