Loren D. Stark Company
EPIC Retirement Plan Services
Randall & Hurley, Inc.
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|Frozen DB Plans Become High Maintenance Items|
The Retirement Plan Blog
Feb. 3, 2015
"Take the example of a frozen pension plan covering 50 participants that is $500,000 underfunded. This employer will see their PBGC premiums increase from $6,600 in 2013, to $9,450 in 2014, to $14,850 this year, and to $14,850 next year -- [a] 168% increase in 4 years.... [T]he new set of mortality tables could significantly increase pension liabilities.... Projections ... indicate that  Plan liabilities could increase 6% to 8%, and  Depending on participant age and retirement date, lump sum distributions could increase from 7% to 15%."
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