|[April 17, 2012]
How to Shut Down a Frozen Defined Benefit Pension Plan
DES MOINES, Iowa --(Business Wire)--
A significant number of defined
benefit plan sponsors have frozen their plans but continue to
feel the financial strain of low interest rates and volatile markets.
Many lack a clear strategy for taking the next logical step: shutting
down the plans altogether.
Principal Financial Group® offers an enhanced defined
benefit termination program-including a new white paper-Best
Practices for Executing a Termination Strategy; Winding Down Your
Hard-Frozen Defined Benefit Plan-to help financial professionals
and their clients manage and close down defined benefit plans in
a timely, cost-efficient manner.
The Principal® is among a limited number of service providers
able to offer a start-to-finish program for shutting down a defined
"Many plan sponsors are anxious to get their defined benefit plans
off their books. But even if eonomic conditions rebound, shutting down
a plan is time-consuming and complex," said Janet Kubik, vice president
of retirement and investor services at The Principal, the number one
provider of defined benefit plans1 . "That's why it is
so important to develop a clear strategy for terminating a plan."
The enhanced defined benefit termination program provides
resources, education and actuarial consulting to help financial
professionals and their clients walk through the key steps for shutting
down a plan:
Developing a termination strategy by evaluating cost, funding
strategies and the impact of asset allocation
Effective execution of a Dynamic Asset Allocation Strategy
Administration of the plan termination process
Final risk transfer-distribution of assets to settle obligations
The two-part white paper series elaborates on each step. Part
I offers best practices for developing a formalized exit strategy. Part
II , the newest paper in the series, offers best practices for
building a termination strategy all the way to final distribution of
For more news and insights from The Principal, connect with us on
Twitter (News - Alert) at: http://twitter.com/ThePrincipal
About the Principal Financial Group
The Principal Financial
Group® (The Principal ®)2 is a global
investment management leader including retirement services, insurance
solutions and asset management. The Principal offers businesses,
individuals and institutional clients a wide range of financial products
and services, including retirement, asset management and insurance
through its diverse family of financial services companies. Founded in
1879 and a member of the FORTUNE 500®, the Principal
Financial Group has $335 billion in assets under management3 and
serves some 18 million customers worldwide from offices in Asia,
Australia, Europe, Latin America and the United States. Principal
Financial Group, Inc. is traded on the New York Stock Exchange under the
ticker symbol PFG. For more information, visit www.principal.com.
1 Based on number of total DB clients, PLANSPONSOR Magazine,
2 "The Principal Financial Group" and
"The Principal" are registered service marks of Principal Financial
Services, Inc., a member of the Principal Financial Group.
As of Dec. 31, 2011.
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