The American Benefits Council testified before the ERISA Advisory Committee on Wednesday, describing the key motivations that have caused many employers to consider reducing their
Craig Rosenthal, a partner with Mercer, testified on the Council’s behalf, emphasizing that the legislative and regulatory environment for pension plans has made sponsorship increasingly difficult over the past few decades.
“If
“There is no one-size-fits-all answer as to why some companies adopt de-risking approaches and others do not, nor is there a simple answer as to why companies that do de-risk do so in different ways,” Rosenthal said. “As the EAC formulates its recommendations to the U.S. Department of Labor on this subject, we urge its members to consider that the best way to preserve defined benefit pension plans is to mitigate the complex financial challenges imposed on pension plan sponsors.”