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From Pension to Payout: Employers Are Liking Lump Sums

When defined benefit plan participants take a lump sum, they move out of the plan. That means plan sponsors that cash out participants have a smaller plan with tighter variables—including contribution rates.

October 16, 2012
Related Topics: Top Stories - Frontpage, Retirement/Pensions, Defined Benefit Plans, Retirement Planning, Benefits
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When defined benefit plan participants take a lump sum, they move out of the plan. That means plan sponsors that cash out participants have a smaller plan with tighter variables—including contribution rates.
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