Treasury and IRS move backward by giving a green light to offering retiree pension buyouts

2019-04-11T08:57:10-07:00April 11th, 2019|Categories: Pension Funding|Tags: , , |

Recently, the IRS walked back protections that limited a company’s ability to offer a lump-sum payout for the monthly benefit provided by its defined-benefit pension plan. This strategy of offering lump sums allows companies to reduce their liabilities before purchasing a group annuity from an insurance company — a process known as “de-risking.” This de-risking strategy made the headlines in the U.S. in 2012 with an initiative by General Motors GM wanted to transfer its liability for retiree benefits to [...]