TP Investment Advisory works closely with Plan Sponsors, Trustees, and Investment Committees of Defined Benefit Plans / Pension Plans to ensure that the proper solutions/options are in place and continuously being monitored and reviewed to help ease the burden that can be a Defined Benefit plan.
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Below are the typical Defined Benefit plans we deal with and common questions & concerns associated with those plans.
Frozen Plans
Hard Frozen – Generally the decision has already been made to terminate the plan ASAP at the lowest possible cost. This plan no longer allows new entrants into the plan and the benefit accruals have stopped for all existing employees in the plan.
Concerns and Questions:
– Volatility of Contributions (costs).
– What is the ultimate exit strategy?
– How do I monitor the progress of the termination?
Soft Frozen – No longer allows new entrants, but existing employees in the plan continue to accrue additional benefits. The goal of complete termination may or may not be the end result here.
Concerns and Questions:
– What review process did you go through on deciding to soft-freeze the plan?
– Is managing the soft frozen plan increasing your administration burden?
– How are you managing potential volatility in the level and amount of contributions needed to fund the plan? (costs)
– Are you still spending too much time administering the plan?
Active Plan (Non-Frozen) – New and existing employees are still accruing benefits.
Concerns and Questions:
– The volatility of contributions (costs!)
– Burden of administration for a Defined Benefit plan (spending too much time on this plan)
TP Investment Advisory understands and works with plan sponsors to determine their short and long term plan goals. We help meet your needs by offering and working with an array of services including:
Investments, Plan design, Actuarial, Recordkeeping, Participant Education, Plan Document
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