◀ The Principal Blog

Posts from the ‘Defined Benefit’ category

So You’ve Frozen Your DB Plan – Now What? (Part 2)



There are generally three steps to terminate a defined benefit (DB) plan.  Today, let’s take a look at the first step– evaluating the cost. Step 1– Evaluating the cost of terminating a DB plan The cost to terminate a DB plan is generally more than the cost to fully fund a hard frozen plan. …

Read more

So You’ve Frozen Your DB Plan – Now What?



You likely chose to freeze your defined benefit (DB) plan for a variety of reasons – cost of capital, volatility of contributions, balance sheet impact – but have you considered what comes next? There are two primary options: Terminate the plan and pay all the benefits in full – which…

Read more

Recent