By Brian Croce
Source: Pensions & Investments
The news around corporate defined benefit plans over the past couple decades has been bleak, with companies expeditiously freezing or terminating plans. But with some help out of Washington, experts say there’s an opportunity for employers to reopen plans still on their books or provide their workers with guaranteed income in retirement.
“For a sponsor that has a frozen plan that has participants concerned about guaranteed income, you don’t necessarily need some new solution in the DC plan, you’ve got a guaranteed income thing over there,” said Jon Barry, managing director at MFS Investment Management. “So maybe it’s worth thinking about reopening that because that could be one piece to the puzzle in helping participants with their retirement income challenge.”
Standing in the way of widespread adoption are outdated funding rules and rising Pension Benefit Guaranty Corp. premiums, sources said.