Welcome to ,CES-CREWS' new blog on the fascinating world of DB plan de-risking and termination trends.
Just who needs that you might be saying?
Well, our blog is uncommonly interested in a point-of-view which is often lacking in this area: the participants. Not that we aren’t interested in the plan sponsor – quite the opposite. But plan sponsors generally have a phalanx of advisers available to them and no shortage of analyses to read about themselves. Participants? Not so much.
As the GAO, DOL, IRS and others have noted, the current process of offering lump sum elections during lump sum windows and terminations leaves much to be desired. So much so that the title of the GAO’s landmark 2015 report reads:.
“Participants Need Better Information When Offered Lump Sums That Replace Their Lifetime Benefits"
February 2015, U.S. General Accounting Office
We couldn’t agree more…