Carmel, CA More Companies Offloading Retiree Pension Plans To Insurance Companiesby Richard Kuehn on 03/13/17
If you don't recognize the name of the payor on your retirement check, don’t worry. More and more companies are offloading their pension plans to insurance companies who administer them and issue checks to retirees. As fewer and fewer companies offer old-fashioned pension plans, the headache of administering them and try and time the volatility of stocks and interest rates has become a headache that many companies don’t want to deal with. As interest rates go up, this reduces the amount of any unfunded shortfall on pension plans, so expect more companies to offload their pension plans in the future as the Federal Reserve Bank is expected to raise interest rates a whopping three times this year.