"Lump sums can be a useful tool to reduce the size of pension obligations, but they must fit within the context of an organization's overall financial and HR strategies. If the plan sponsor's objective is to reduce its pension risk, the first question is: 'Are we better off settling our liabilities, either through lump sum payments or other risk transfer mechanisms such as an annuity purchase, or are we better off trying to manage these risks ourselves?'"  MORE >>