Multiple years of strong investment returns, coupled with a recent rise in pension plan discount rates, has improved funded status for the median U.S. corporate pension plan more in the last 90 days than in the last five years. With this success, plan actuaries are actively pitching plan termination to many plan sponsors, claiming financial and risk-management benefits. While many of these claims are significantly overstated, this will likely be the eventual path of most plan sponsors.

Tom Harvey and Casey Gillespie examine key considerations for making this decision, including the risks posed by the plan and examples demonstrating the costs of termination/termination option value.

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Tom Harvey

Tom Harvey
Advice Director

 Casey Gillespie

Casey Gillespie
Client Investment Strategist

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