Welcome to Ask an Adviser, EBN’s weekly column in which benefit brokers and advisers answer (anonymous) queries sent in by our readers. Looking for some expert advice? Please submit questions to askanadviser@arizent.com. This week, we asked Robin Powell, a benefits consultant with Strategic Benefits Advisors, to weigh in on the following: How do we best position our frozen DB plan for termination?
While terminating a defined benefit (DB) plan will save a company money in the long run, these projects are a lot of work and typically require a significant one-time cash outlay, which makes them difficult to get off the ground without strong internal support. Identifying an executive sponsor and making specific team leads accountable for the project’s success can help pave the way to success.
