How to Handle a Lump Sum Window

4 Reasons to Offer a Lump Sum Window

1. Lump Sums generally cost less than annuity purchases.
2. Lump sums “de-risk” the plan by transferring investment and longevity risk to participants.
3. Lump sums reduce ongoing administrative costs for PBGC premiums, audit and actuarial fees, and HR resources used to maintain contact with former employees.
4. Lump sums make plan termination easier.