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.
Talk to our team