PLANADVISER - September/October 2017 - 25

Frozen DB Plans Still Need Advising
Many ways a pro can serve a plan that's winding down
IF YOU purchased a large home when
raising a family, would you want to
continue to pay for it once the kids had
grown and moved away? For many, it
may be worth downsizing to fit a new
set of needs and goals.
That is the analogy Monica Gallagher,
a partner at October Three
Consulting, utilizes to describe the
work of administering a frozen defined
benefit (DB) plan. Just because a plan
is frozen does not mean the job of
managing it will go away altogether, so
a reassessment of needs and services
is always in order once the freezing has
been done.
" The fees from the
actuarial calculation
might go down, but
the accountant and
actuary will still charge
their basic fee. "
According to Gallagher, along with
Stewart Lawrence, national retirement
practice leader from Segal Consulting,
sponsors still need help with administration
of the plan; actuarial and
accounting tasks; and payment of
Pension Benefit Guaranty Corporation
(PBGC) premiums. Further services
needed might include supervising the
actuaries and accountants who evaluate
liabilities, calculate contributions
and otherwise oversee the plan.
Lawrence notes that while the
audit process for a frozen plan may
grow slightly easier as the number of
participants declines, the costs will,
for the most part, remain the same.
" The fees from the actuarial calculation
might go down, but the accountant
and actuary will still charge their
basic fee, " he says. Plan sponsors may
need considerable help to maximize
cost efficiency in this environment.
According
to
Lawrence, defined
benefit plans can be in one of four
stages-ongoing, closed, frozen or
terminated-and advisers can play
a role at each. A terminated plan
requires that an employer build a
process for settling the plan obligations;
ongoing plans have participants
who are still accumulating benefits
as service continues; closed plans,
also known as soft-frozen plans, block
TALKING POINT
Employees' Thoughts on
Work and Money
Want flexible
work hours
74%
Want portable
benefits
62%
Would like
to be able to work
from home
66%
Source: MetLife
Want
customized
benefit options
72%
Expect to
delay
retirement
because of their
financial situation
43%
Are anxious
about their
financial well-being
49%
Worry
about money
60%
Would
like their
employer
to provide
financial security
40%
planadviser.com september-october 2017 | 25
new participants from entering, yet
allow existing employees to resume
benefit accrual; and frozen plans
strictly disallow all participants from
accruing benefits.
" For most, you start with an
ongoing plan, then the client may
become a closed plan, a frozen plan,
and, at some point, you're going to be
a terminated plan, " he explains.
-Amanda Umpierrez

http://www.planadviser.com

PLANADVISER - September/October 2017

Table of Contents for the Digital Edition of PLANADVISER - September/October 2017

Onboarding New Clients
2017 Retirement Plan Adviser Survey
A Focus on the TDK Market
Reharvesting
Annuities in DC Plans
Keeping Them Happy
Laden With Student Debt
When Advisers Tout Their Own Services
PLANADVISER - September/October 2017 - Cover1
PLANADVISER - September/October 2017 - Cover2
PLANADVISER - September/October 2017 - 1
PLANADVISER - September/October 2017 - 2
PLANADVISER - September/October 2017 - 3
PLANADVISER - September/October 2017 - 4
PLANADVISER - September/October 2017 - 5
PLANADVISER - September/October 2017 - 6
PLANADVISER - September/October 2017 - 7
PLANADVISER - September/October 2017 - 8
PLANADVISER - September/October 2017 - 9
PLANADVISER - September/October 2017 - 10
PLANADVISER - September/October 2017 - 11
PLANADVISER - September/October 2017 - 12
PLANADVISER - September/October 2017 - 13
PLANADVISER - September/October 2017 - 14
PLANADVISER - September/October 2017 - 15
PLANADVISER - September/October 2017 - 16
PLANADVISER - September/October 2017 - 17
PLANADVISER - September/October 2017 - 18
PLANADVISER - September/October 2017 - 19
PLANADVISER - September/October 2017 - 20
PLANADVISER - September/October 2017 - 21
PLANADVISER - September/October 2017 - 22
PLANADVISER - September/October 2017 - 23
PLANADVISER - September/October 2017 - 24
PLANADVISER - September/October 2017 - 25
PLANADVISER - September/October 2017 - 26
PLANADVISER - September/October 2017 - 27
PLANADVISER - September/October 2017 - 28
PLANADVISER - September/October 2017 - 29
PLANADVISER - September/October 2017 - Onboarding New Clients
PLANADVISER - September/October 2017 - 31
PLANADVISER - September/October 2017 - 32
PLANADVISER - September/October 2017 - 33
PLANADVISER - September/October 2017 - 34
PLANADVISER - September/October 2017 - 35
PLANADVISER - September/October 2017 - 2017 Retirement Plan Adviser Survey
PLANADVISER - September/October 2017 - 37
PLANADVISER - September/October 2017 - 38
PLANADVISER - September/October 2017 - 39
PLANADVISER - September/October 2017 - 40
PLANADVISER - September/October 2017 - 41
PLANADVISER - September/October 2017 - 42
PLANADVISER - September/October 2017 - 43
PLANADVISER - September/October 2017 - 44
PLANADVISER - September/October 2017 - 45
PLANADVISER - September/October 2017 - 46
PLANADVISER - September/October 2017 - 47
PLANADVISER - September/October 2017 - A Focus on the TDK Market
PLANADVISER - September/October 2017 - 49
PLANADVISER - September/October 2017 - 50
PLANADVISER - September/October 2017 - 51
PLANADVISER - September/October 2017 - 52
PLANADVISER - September/October 2017 - 53
PLANADVISER - September/October 2017 - 54
PLANADVISER - September/October 2017 - 55
PLANADVISER - September/October 2017 - 56
PLANADVISER - September/October 2017 - 57
PLANADVISER - September/October 2017 - Reharvesting
PLANADVISER - September/October 2017 - 59
PLANADVISER - September/October 2017 - 60
PLANADVISER - September/October 2017 - 61
PLANADVISER - September/October 2017 - Annuities in DC Plans
PLANADVISER - September/October 2017 - 63
PLANADVISER - September/October 2017 - 64
PLANADVISER - September/October 2017 - 65
PLANADVISER - September/October 2017 - Keeping Them Happy
PLANADVISER - September/October 2017 - 67
PLANADVISER - September/October 2017 - Laden With Student Debt
PLANADVISER - September/October 2017 - 69
PLANADVISER - September/October 2017 - When Advisers Tout Their Own Services
PLANADVISER - September/October 2017 - 71
PLANADVISER - September/October 2017 - 72
PLANADVISER - September/October 2017 - Cover3
PLANADVISER - September/October 2017 - Cover4
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