PBGC rate hikes may persuade employers to transfer pension risk to annuities

12/19/2013 | BenefitsPro.com

The increase in Pension Benefit Guaranty Corp. premiums imposed by Congress in its budget deal could be enough to persuade employers to get their pension liabilities off their books by purchasing annuities or making lump-sum payments, according to the consulting firm Aon Hewitt. The revised premiums will increase the carrying costs of unfunded liabilities by more than 3%, which could be enough to prompt companies to take action to derisk their pension plans, the firm said.

View Full Article in:

BenefitsPro.com

Published in Briefs: