Defined benefit plan lump-sum windows can help to reduce the risk associated with unpredictable defined benefit plan costs by offering one-time, lump-sum cash-out opportunities to certain plan participants.
Defined benefit plan lump-sum windows can help to reduce the risk associated with unpredictable defined benefit plan costs by offering one-time, lump-sum cash-out opportunities to certain plan participants. While lump-sum windows have advantages for participants and plan sponsors, they also present disadvantages and there are many legal issues to consider when implementing a lump-sum window.