PBGC Premiums Driving DB Plan Sponsors to Fund, De-Risk

2017-09-20T23:07:39-07:00September 20th, 2017|Categories: PBGC|Tags: |

Eighty percent of defined benefit (DB) plan sponsors have accelerated funding, largely due to increasing Pension Benefit Guarantee Corporation (PBGC) fees and the prospect of lower corporate taxes, according to results of the Mercer/ CFO Research 2017 Risk Survey, “Adventures in Pension Risk Management.” “Two years ago, mortality assumptions dominated as the main influencing factor. Today, PBGC premiums and market conditions have emerged as most cited reasons. Companies feel that the time is right to reduce or eliminate their pension funding shortfalls.” [...]