Russell Investments' popular Corporate Pension Finance Handbook was created to help bridge the gap between the worlds of corporate officers and pension staff. In this supplemental handbook, we have concentrated on a specific type of pension plan: those that have frozen benefit accruals as an early step on the path towards eventual plan termination. Since the original publication, we have experienced even more funding relief. This created incentives to delay full funding. Sponsors are also facing high PBGC premiums, which penalize underfunded plans. This handbook addresses industry trends and regulations in key areas such as:
- Increases in PBGC premiums
- The growth of the annuity market
- The concept of "plan hibernation"
A look inside
The handbook follows a hypothetical company, "Three Peaks Equipment" and their employees, Charlene, Holly, and Daniel as they journey through the investment and management of a frozen plan. Their journey begins with their background and continues throughout the next three sections: Funding policy, Investment policy, and Risk transfer.