Principal Enhances DB Termination Program

The defined benefit termination program provides resources, education and actuarial consulting to help financial professionals and their clients walk through the key steps for shutting down a plan, including:

•  Development of a termination strategy by evaluating cost, funding strategies and the impact of asset allocation;

•  Effective execution of a Dynamic Asset Allocation Strategy;

•  Administration of the plan termination process; and

•  Final risk transfer—distribution of assets to settle obligations.

Principal also released a white paper in two parts titled “Best Practices for Executing a Termination Strategy; Winding Down Your Hard-Frozen Defined Benefit Plan.” The first part offers best practices for developing a formalized defined benefit plan exit strategy. Part two, the newer paper in the series, offers best practices for building a termination strategy all the way to the final distribution of participant assets.