By Noah Zuss
Source: Plan Sponsor

Defined benefit plans, the dinosaurs of the retirement world, may once again roam the private-sector benefits landscape, according to retirement industry veterans with pension actuarial expertise.

For plan sponsors with a frozen defined benefit plan, it could be a good time to consider unfreezing, says Zorast Wadia, principal and consulting actuary, Milliman.

Regulatory relief from Congress in the American Rescue Plan Act, economic and labor market conditions, hybrid pension plan designs and the emergence of modern investment approaches such as liability-driven investing—which focuses on using fixed-income instruments with durations matched to plan liabilities—have coalesced into a favorable environment for plan sponsors to consider defrosting a frozen pension plan, Wadia argued in an article for Milliman.

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