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Pension Cashouts Expected to Rise in 2014
Mercer Link to more items from this source
May 19, 2014
"[T]he three most important concerns ... are: [1] 'Interest rates are too low right now.' ... If a plan sponsor is looking to profit from the expectation of a rise in interest rates ... there are more efficient ways to achieve that than carrying terminated vested liabilities. [2] 'Paying lump sums will trigger a P&L settlement charge and impact our share price.' ... Even if settlement accounting were triggered, the market has become more savvy about adjusting earnings for pension expense ... [3] 'I don't want my employees to squander their pensions.' ... [O]ver 80% of lump sums over $50,000 are rolled over into an IRA or other tax-qualified vehicle."

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