Perspective: Pension plans -- Frozen, but not forgotten

Funding issues, expense volatility, and the move toward mark-to-market accounting have forced many companies to freeze their defined benefit plans. But frozen plans still carry interest rate, investment, and demographic risks, so plan sponsors need to manage these plans toward a targeted outcome -- such as terminating the plan or fully funding its obligations while minimizing risks. This first 2007 issue of Mercer's Perspective on Retirement series looks at the financial implications of a plan freeze and suggests the best ways to manage frozen plans to reach the desired outcome.  (Perspective, 15 Feb 2007, 1 page)

• Full Perspective (PDF)

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