"All frozen pension plans are plan terminations in waiting."
As a closed or frozen plan matures, promised benefits will be paid out, and the plan will shrink in size. Rather than maintaining the plan until the last participant dies (which could be 80 years from now), the sponsor will eventually settle all benefits and close down the plan. Therefore, sponsors of frozen defined benefit (DB) plans do not really need to decide whether they will terminate – they just need to decide when.
While terminating a DB plan involves numerous critical steps, and although many factors can impede or delay the termination process, crafting and maintaining good funding and investment policies will help the plan sponsor avoid pitfalls and make the best use of available resources.
Read this paper to learn more about how well-aligned policies and strategies will increase the odds that the sponsor’s actions will match overall plan objectives, and that the termination process will run smoothly.
Download research"The Investment and Management of Frozen Pension Plans." Available at: https://russellinvestments.com/us/solutions/institutions/investment-guidebooks