Funding, Risk, and Exit: Ranges, Interest Credit, Freeze/Terminate a CB Plan

Funding, Risk, and Exit: Ranges, Interest Credit, Freeze/Terminate a CB Plan

Funding isn’t guesswork: adopt a funding policy that matches cash flow and risk, stay within actuarial ranges, and review annually; plan the path to freeze or terminate if needed.

Manage variability

Contribution ranges: set targets with permitted room for strong vs. lean years.

Interest credit: fixed, Treasury‑based, or permitted market‑return—choose what fits tolerance.

Investment alignment: match assets to the interest credit to dampen volatility vs. accruals.

Freeze or terminate

Freeze stops new accruals; termination requires full funding and proper settlements (lump sum/rollover/annuity), with notices and filings.

What PSI delivers

Annual actuarial certification, minimum funding monitoring, Form 5500, and an exit playbook when needed.

Plan Sponsor Action Checklist

Checklist

Adopt a written funding policy with ranges and review annually.
Checklist

Align investments to the interest crediting method.
Checklist

Document freeze/termination triggers in governance materials.
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