The Continued Value of Defined Benefit Plans
DB plans deliver predictable lifetime income and can be attractive for professional groups and owners needing higher deductions.
Where DB Still Fits
DB plans deliver predictable lifetime income and can be attractive for professional groups and owners needing higher deductions.
Trade‑Offs
Higher funding responsibility and PBGC premiums
More complex compliance and actuarial work
Potentially large benefits for long‑tenured staff
Decision Framework
Compare DB, cash balance, and DC‑only scenarios with multi‑year projections and exit planning.
Plan Sponsor Action Checklist
Checklist
Assess appetite for funding volatility and PBGC costs.
Checklist
Model DB vs. cash balance vs. DC‑only over 3–5 years.
Checklist
Plan participant communications for benefit changes.
Talk to our team
References
- IRS/DOL DB plan guidance.