Tag: DB plans

Ideas to Help Manage Surplus Funding When Clients Terminate DB Plans

According to Brian Donohue, with October Three Consulting, the master strategy to get to full-funding-but-no-surplus on termination is to reduce plan risk by gradually changing the plan’s asset strategy as the plan approaches full funding—the “glide path” strategy that some sponsors have adopted.

Discuss Accelerating Contributions With DB Plan Sponsor Clients

Contributing more than the minimum required for 2017 by the September 15 deadline will result in a higher deduction for plan sponsors, and continuing to accelerate funding in the future can minimize PBGC costs, improve funded status and mitigate higher required contributions in coming years.