News & Analysis as of

Benefit Plan Sponsors › Defined Benefit Plans › De-Risking

McDermott Will & Emery

IRS Opens the Door to Lump Sum Payment Windows for Retirees in Pay Status

McDermott Will & Emery on

Due to an Internal Revenue Service (IRS) change in course published in Notice 2019-18, plan sponsors may now offer retirees lump-sum windows as another pension “de-risking” option. Plan sponsors considering pension de-risking...more

Holland & Hart - Employers' Lawyers

IRS Opens Window for Lump Sum Distribution Windows

Holland & Hart - Employers' Lawyers on

Defined benefit pension plans can be troublesome for sponsoring employers to maintain. The long-term liability for funding pension benefits coupled with unpredictable investment returns creates volatility. Companies...more

Proskauer - Employee Benefits & Executive...

IRS Reopens Opportunity to Cash Out Retirees in Pay Status—At Least For Now

Proskauer - Employee Benefits & Executive... on

One de-risking tool for employers with defined benefit pension liabilities is to allow participants to receive lump-sum distributions. Although lump sums result in a short-term cash drain, they reduce the plan’s long-term...more

Poyner Spruill LLP

IRS Announces Retiree Lump-Sum Windows Are Back On The Table

Poyner Spruill LLP on

Pension plan sponsors have been looking for opportunities to manage their growing pension liabilities for many years now. In 2015, the Internal Revenue Service (IRS) closed the door on sponsors who were considering offering...more

Foley & Lardner LLP

Pension Plan Sponsors – When “De-Risking”, Select Annuity Providers With Care

Foley & Lardner LLP on

Employer-sponsored retirement plans come in many varieties. For example, under 401(k) and other defined contribution plans, employees and, often, employers may make specific contributions to an employee’s plan account...more

Goodwin

Fifth Circuit Affirms Dismissal of Claims Involving De-risking of Pension Assets

Goodwin on

In October 2012, a defined benefit plan sponsor amended its plan to provide that, effective Dec. 7, 2012, the plan would purchase an annuity to cover the plan’s obligations to make payments to the roughly 41,000 participants...more

McDermott Will & Emery

Recent IRS Guidance Prohibits Lump-Sum Windows for Pension Retirees, Updates Pension Mortality Tables for 2016

McDermott Will & Emery on

The Internal Revenue Service (IRS) recently issued two significant notices for employers that sponsor defined benefit pension plans, particularly those considering lump-sum windows as a “de-risking” option for their plans....more

Snell & Wilmer

The IRS Takes Aim at De-Risking of Defined Benefit Plans

Snell & Wilmer on

Many defined benefit plan sponsors are looking for ways to reduce the on-going liability and the volatility of the annually required contributions to their defined benefit plans, which is sometimes referred to as...more

Franczek P.C.

PBGC Issues Draft 2015 Premium Filing Instructions Requiring De-risking Disclosures

Franczek P.C. on

The PBGC recently submitted draft forms and instructions for 2015 premium filings to the Office of Management and Budget. The draft forms and instructions would require defined benefit plan sponsors to notify the PBGC if they...more

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