Over the past several years, sponsors of defined benefit pension plans have examined and implemented ways to reduce their pension liabilities. This is sometimes referred to as βde-risking.β One de-risking option is for a plan to offer a limited-duration window where participants who normally do not have the option to do so can elect to receive the value of their benefits in a lump sum (rather than a stream of payments over an extended time-period).
Home > Federal Law Articles > Employee Benefits > General (Benefits) > IRS No Longer Forbids Pension Plans From Offering Lump Sum Payouts To Retirees Currently Receiving Payments