Plan termination pitfalls and how to avoid them By Verna Brenner | 10 December 2018 Background For several years, plan sponsors have been looking for ways to de-risk their defined benefit retirement plans in an effort to reduce or eliminate the liability associated with pension expenses. There are different settlement strategies that plan sponsors can explore, and voluntary plan termination is one of them. One of our clients of over 13 years, a family-owned integrated package and paper producer with approximately 800 active and terminated vested employees, decided to freeze accruals of the salaried plan with the intention of terminating the plan soon after. In preparation for the plan termination, the plan sponsor offered all terminated, vested, and active participants the option to take a

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