If you are looking for options to lower your annual PBGC
premiums and reduce overall pension liability (including plan
termination liability), a retiree lump-sum window may again be a
viable option. De-risking strategies are methods a company can
implement to reduce its pension plan's administrative expenses,
PBGC premiums and overall pension liability.
Prior to 2015 and the issuance of IRS Notice 2015-49, a common
practice for pension plans to decrease their funding requirements,
PBGC premiums and overall pension liability was to offer a
"lump-sum window" to retirees who were already in pay
status and receiving monthly payments from the plan. For some
retirees (especially those with small monthly payments), it was a
welcomed offer—they could elect to receive a lump-sum payment
equal to the "present value" of their estimated future
monthly payments and invest those amounts for future needs or use
the lump-sum payment to cover much-needed expenses. For the
