A client of Mesirow Financial Compensation and Executive Benefit Strategies decided to cease operations and terminate their employee pension plan.
As the sponsor of a qualified plan, the organization was required to settle the benefit obligations to participants by purchasing irrevocable annuities. In addition, they were subject to strict ERISA, DOL and IRS fiduciary standards to act solely in the interests of the participants and beneficiaries. In order to meet this fiduciary responsibility, the organization needed qualified assistance to purchase the annuities from an insurance carrier that was financially sound and able to fulfill the annuity obligation.
- Mesirow Financial Compensation and Executive Benefit Strategies professionals first reviewed the organization's plan documentation, established precedence and analyzed participant demographic data to accurately assess the benefit obligation.
- We then solicited bids from multiple insurance carriers, acting as intermediary on behalf of the plan sponsor with the goal of placing the annuities.
- Our extensive due diligence included analyzing the actuarial, financial, and contract information from each carrier.
- After actively negotiating bids with each carriers, we presented the organization with a formal DOL-compliant report documenting each potential carrier's bid and financial strength across several criteria.
- We then worked with the plan sponsor to immediately implement the placement of annuities with the selected insurance carrier.
The plan sponsor purchased annuities at a competitive price from a highly reputable and financially strong insurance carrier that offered favorable terms to the plan participants. As a result, the client was able to terminate the plan at reasonable cost with peace of mind knowing that their fiduciary requirements were satisfied.
Terminating a retirement plan is an arduous, multi-step process that often takes months. With in-depth understanding of retirement plans, expertise in actuarial analysis and knowledge of DOL, ERISA, IRS and PBGC requirements, Mesirow Financial Compensation and Executive Benefit Strategies can simplify and streamline this complex process for plan sponsors by managing the entire process from start to finish. We provide clients with the information they need to make sound decisions for terminating a plan efficiently and cost-effectively, while helping ensure fulfillment of the plan sponsor's fiduciary responsibility.