The Continued Value of Defined Benefit Plans

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.
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References

  • IRS/DOL DB plan guidance.