December 10, 2015

PBGC Study: Estimated Risk Transfer Activity

The Pension Benefit Guaranty Corporation (PBGC) has published the results of its first study of risk transfers by single-employer defined benefit plans. The study is based on information garnered from the Form 5500 annual reports of about 3,600 large plans for the years 2009-2013. From that information, PBGC concluded that over 500 of those plans had undertaken a risk transfer event. Almost 400 of the events involved lump sum payouts; the remaining events involved annuity purchases. In its related blog posting, the PBGC emphasized that the study is only an estimate of risk activity and noted that, because it has started directly collecting information on risk activity on its premium forms, it expects to have better information in the future.

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