As outlined in the article, “Cost Considerations When Freezing Your DB Plan” published by plansponsor.com, there are four stages of defined benefit (DB) plans: ongoing, closed, frozen, and terminated. Each stage of your DB plan has associated costs. Sponsors should be aware of these costs as you consider moving from one stage to another. As a sponsor of a DB plan you may have considered terminating a plan to save on the annual costs of administering the plan, especially with the stock market performing at such a high level. A key point in this article is to evaluate the journey for your DB plan, regardless of the present stage of the plan.
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Thank you for reading, and please contact us if you have any questions!