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Employers who sponsor defined benefit pension plans, including cash balance plans, are experiencing a bit of a crunch when it comes to their 2008 valuations. Three key factors converge and place pressure on sponsors of defined benefit contribution plans. Here’s how Trinity Pension Consultants, Inc. can help.
Pressure Point #1 Employers are looking to save money on costs anywhere they can.
Business owners everywhere are looking for ways to reduce costs, especially in the area of employee benefits such as defined contribution and defined benefit pension plans. Many are already reducing and even eliminating the 401(k) match. An area often overlooked on the balance sheet is the cost for administering a plan.
What is a defined contribution plan? How can Trinity Help?
It’s important for plan sponsors to know there are choices available and Trinity can provide expert level actuarial and administration services that result in real cost savings. It’s also important to know that sponsors can usually change their actuarial firm without changing their investments.
Pressure Point #2 Plan Sponsors are faced with difficult pension plan funding choices.
Many plan sponsors who were accustomed to making substantial contributions to their plans now find that the changes in the rules effective in 2008 and the current state of the market have made it harder to understand how much to contribute or how to stop making contributions when times are tough.
The Pension Protection Act of 2006 (“PPA”) provided far reaching law changes and a philosophical shift in how the government expects defined contribution pension plans to be administered. While the intent of the changes was good, the execution was poor and has left sponsors with rules that are tight, short term in focus and with a less flexible approach to plan funding.
How can Trinity Help?
The sponsor of a defined benefit plan wants to know the available options, such as cash balance defined benefit plans and needs an actuarial firm to bring them interactive and timely expertise. Trinity can outline choices that the sponsor may not have aware of or considered. Then the right decision for the company’s future can be made.
Pressure Point #3 Plan Sponsors are experiencing a lack of specific, timely and easy to understand solutions from their actuary.
Plan Sponsors need their consultant to help them understand and make sense of all the noise surrounding their defined benefit pension plans, but too often they find themselves in a position of receiving information and solutions they can’t understand. Plan Sponsors need an expert and a translator.
How can Trinity Help?
Defined Benefit pension plans can be complicated. Trinity makes them easy to understand. We provide personal touch and expertise in face-to-face meetings to ensure that our clients are comfortable with and understand how to manage the costs and benefits of their pension plans, such as learning more about defined benefit plan deductibility.
