Frozen plan services
Freezing a defined benefit pension plan doesn’t stop the risk of runaway costs or liability or even necessarily lessen it. It simply means the monthly pension benefit amount is fixed and no longer growing with service or pay. And whether the plan is soft frozen (closed to new participants) or hard frozen (no accruals for anyone), the plan sponsor must still fulfill its commitment for those frozen benefits.
At this point, the frozen plan stops being a recruitment or retention tool and instead becomes a purely financial obligation. That’s why it is important to carefully monitor the plan and the funding level to ensure participant benefits will be paid in full, while also minimizing the cost to the plan sponsor.
Milliman consultants have a vast array of experience developing and executing detailed solutions and providing tools and guidance to plan sponsors of frozen pension plans, whatever the desired end-game is for the plan. We help you accomplish your unique time-critical goals for your frozen plans, including:
- A strategic approach to plan termination
- A structured implementation roadmap
- Automated tools to update and project funded status on a timely basis (up to daily)
- Tools for asset liability modeling and liability driven investing
- Milliman’s Managed Risk Strategy (MMRS) to mitigate asset volatility and reduce downside risk
To learn more about how Milliman can help with your frozen plan, please contact us.
These Cookies are used by us or third-party service providers to analyze how the Sites are used and how they are performing. We use the following service providers and you can learn more about their privacy policies and how to opt-out of their cookies by clicking on these links:
AI Media: Privacy Policy
Google.com: Privacy Policy
These Cookies are necessary for you to access and navigate our sites.
Social...
We use ‘social buttons’ to enable our users to share or bookmark web pages. These are buttons for third party social media sites. We use the following service providers and you can learn more about their privacy policies and how to opt-out of their cookies by clicking on these links:
Facebook.com: Privacy Policy
Google: Privacy Policy
LinkedIn.com: Privacy Policy
Twitter: Privacy Policy