Terminal funding group annuity contracts can be customized to match many of a terminated defined benefit plan's provisions such as actual retirement and early retirement ages, various forms of payment options and other features such as cost of living adjustments and pre-retirement death benefits.
Pay as You Go Terminal Funding Option
Employers with defined benefit pension plans who do not wish to go through a full termination may wish to utilize a "remove as you go" strategy for "buying out" the obligation.
Examples of where terminal funding can be used
We offer product solutions to sponsors of Defined Benefit and Defined Contribution pension plans. Some examples where Terminal Funding may be used:
- Plan termination
- Spin Offs
- Plant Shutdowns
- Mergers and/or Acquisitions
- Relieve cost of plan administration
- Settlements pursuant to Financial Accounting Standards Board FASB 87/88