Not too long ago, sponsors of defined benefit plans regarded premium payments to the Pension Benefit Guaranty Corp. like a trip to the dentist — a required nuisance.
“The tendency was to take a compliance mindset to PBGC premiums and pension plan funding,” says Brian Donohue, a partner and actuary at Chicago-based pension consultancy October Three.
In other words, premium payments were seen as a necessary cost of doing business for employers offering defined benefit plans — do what you have to do to pay what has to be paid and get the problem off sponsors’ desks until the next round of premiums are owed.
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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.
