The Pension Benefit Guaranty Corp. is moving forward with plans to require defined benefit plan sponsors to notify it whenever they start the process of "de-risking" their plans.
The agency has filed a request with the Office of Management and Budget to approve amended filing procedures in such cases.
According to a summary of the request, published in the Federal Register Monday, the PBGC currently has no comprehensive source for information on risk transfers, which move pension liabilities to the books of insurance companies via group annuity purchases. Companies that "de-risk" also are able to rid themselves of unfunded pension liabilities by offering lump-sum payments to workers and retirees.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
