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Finance Leaders Interested in Pension De-Risking

Key Takeaways

Changes in the tax law are spurring companies to accelerate their pension contributions.
Better funded DB plans lead to an increased interest in pension risk transfers.
More challenging issues include minimizing liability risk and changes in actuarial mortality assumptions.

The passage of the Tax Cuts and Jobs Act, aimed at accelerating economic growth, is driving senior finance executives to reduce the liability risks associated with their corporate defined benefit (DB) pension plans.

That revelation was one of the important findings of a study focusing on how the new tax law, which went into effect 2018, is influencing a range of pension fund-related decisions. The online survey, conducted by CFO Research in collaboration with Prudential Financial, drew 127 responses from finance executives whose companies have DB plans for current and/or former employees.

For a summary of what finance executives are thinking about pension de-risking, read Under New Tax Law, Finance Leaders Show Appetite for Pension De-Risking.

You may also be interested in other CFO Research topics.

The Prudential Insurance Company of America and its affiliates, Newark, NJ

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Prudential’s research study offers employers actionable steps for improving RTW outcomes. The paper focuses on thought processes that play a role in employees’ return to work and productivity. What’s more, it provides employers with best practices to help employees overcome psychological hurdles and successfully return from disability.

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Finance Leaders Interested in Pension De-Risking

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