Terminating a Frozen Pension Plan Without Breaking the Bank

Abstract

Many plan sponsors are more than ready to shut down their frozen defined benefit pension plans. They are tired of paying exorbitant actuarial and administrative fees each year, especially for a plan that is no longer benefiting active employees and improving employee morale. They are frustrated with managing accounting and funding volatility. And they are aggravated with the requirement to pay ever-increasing Pension Benefit Guaranty Corporation (PBGC) premiums. The good news is that the time may be approaching to finally terminate the plan and be rid of the headaches.