Your organization is unique. So are your challenges. You deserve customized retirement plan solutions that are arrived at through careful analysis of data and a collaborative, consultative approach. With state-of-the-art actuarial software and consulting tools, our team uses their detailed knowledge of the complex regulatory environment of retirement plan finances and structure to help your organization overcome obstacles and realize better outcomes. With core services that include cash flow projections, actuarial valuation reporting, annual government compliance and more, let the expertise of our consultants, actuaries and administrators help you and your employees achieve better financial and organizational wellbeing.
Pension Plans are complex and we get it – but we make sure you get it too. Our wide range of actuarial consulting services for defined benefit and retiree medical plans includes offering support in a way that you will understand. This enables you to avoid unnecessary hurdles and do the right thing for your business. Our actuaries are well-versed in understanding the true carrying cost of a pension plan. They will show you how the carrying cost impacts your liability and the future funded status of your plan. We think beyond the numbers to understand the implications of the pension plan on your business. This enables us to help you discover a strategic way into the future.
Pension Plan Analysis
Get insights on the realities of your plan: How much would it really cost (or save) to transfer your pension plan to an insurance company? What is your borrow-to-break-even point? What happens if you wait and exit later? Get the information you need to make positive changes for your pension plan and your business. We can provide services such as valuation and experience studies, financial cost modeling and projections, pension risk and liability management, and qualified separate lines of business (SLOB) analysis testing.
We offer a range of compliance testing services depending on the requirements of your specific plans. These testing services include coverage and benefits testing under IRC 410 and IRC 401(a)(4), Top-25 analysis, and Top-Heavy testing under IRC 416. Equally as important as getting the tests “right,” should there be any anticipated compliance issues, we will consult with you and help address them proactively.
We can provide plan design consulting, valuation services, audits and Comprehensive Annual Financial Reports (CAFR) and other post-employment benefits (OPEB) notice assistance to GASB and ASC 715 retirement medical plans.
Lump Sum Window Administration
The cost of a rolled over lump sum to a terminated vested population can be significantly cheaper than holding pension liability. Don’t miss this opportunity. Gallagher can help you save significant liability amounts and PBGC premiums. We can handle all aspects of the administration of lump sum windows, from the data clean-up to the coordination of pension payments.
The annuity transfer market is booming for good reason. Reduce your liability with a simple transfer. The cost to administer and hold pension liability for plan sponsors has increased. In addition, insurers are offering very competitive pricing. We can show you the cost to transfer your liabilities. We market your plan to insurance companies, run the bid negotiation, provide you with information you need to fulfill your fiduciary obligations and finally manage the transfer process to the insurer.
Pension Plan Termination
Burdensome pension plans can be a drag on a company’s economic health. Terminating a DB plan is a complex endeavor and can pose potential legal and compliance pitfalls. Gallagher specializes in plan terminations and can guide you through the often murky process.
- Financial Analysis – Assess termination liability and surplus/deficit upon termination under various scenarios.
- Benefit Calculations – As a plan sponsor considers terminating their pension plan, final benefit calculations will need to be finalized. Our experienced team can help plan sponsors process these to the extent that they are not yet completed.
We complete all government and legal filings and work with both the Pension Benefit Guaranty Corporation (PBGC) and the IRS to get needed approvals. We provide communication, onsite participant education and call center services to assist participants in understanding the benefits of the plan transfer. We compose and can mail all participant communications.
M&A Analysis/Due Diligence
Many M&A deals include pension and retiree medical issues which can be extremely complex. These range from financial cost and risk concerns to administrative recordkeeping issues. We are able to assist both buyers and sellers in analyzing due diligence issues related to the pension plan.
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Align spend with benefit philosophy. We often assist clients in assessing how their defined contribution retirement plan stacks up to competitors and provide assistance in plan design changes to enhance the recruitment and retention aspects of such plans.
Compliance Testing for 401(k) and DB/DC Combination Designs
The governing rules provide numerous methods for testing plans for nondiscrimination. We are experts in maximizing the benefits of the array of testing methods.
We provide recordkeeping services to most types of defined contribution plans, including plans that are complicated, unique, or require significant expertise.
Employees at all ages and income levels face challenges that require better tools, programs and education. Participant services should focus on targeted outcomes and employee retirement readiness. There are many financial wellbeing levers that need to work together to effectively tackle the financial stress employees are bringing to the workplace every day. Empowering employees with the right tools, education and resources to effectively address their near-term spending habits and financial stressors will enable long-term savings that lead to better business outcomes.
Some of the financial wellbeing support programs available include:
- Benefit Adequacy and Sustainability studies
- Retirement Readiness benefit statements
- Customized web portal
- Preretirement counseling
- Certified benefit calculations and distribution packets
- Call centers
How you communicate with employees about investments and the importance of saving for retirement is equally important as the programs offered. Our administrators, in-house call center staff, and consultants can help your plan participants realize better outcomes. Whether the nature of the inquiry is simple or complex, our staff is fluent in the language of pension and retirement plan benefits.
All of our staff have expertise in pension benefits and are specifically trained on the plans they serve. They also have extensive knowledge in plan terminations, lump sum windows and other pension de-risking activity. We can handle all pension calls, mailings, review of returned elections, data recordkeeping, address searches and payment coordination. Most importantly, our team understands we are an extension of your company. We handle each participant with care, guiding them through the options available so they can make decisions about their retirement benefits or get the professional guidance needed.
A competitive total compensation strategy requires dedicated financial wellbeing programs such as retirement planning and education on financial decision-making. Part of this commitment includes evaluating employee retirement readiness. Take advantage of our substantial toolset of analytics that includes planners, data modelers, workforce evaluation systems and more. You’ll get the insights you need to build not just a great employee benefits and compensation plan, but also a great workforce that’s engaged, motivated and invested in your organization’s success. Actuarial specialists can offer support by evaluating current retirement plan structures to match, model and project different levels of retirement funding. These exercises help address key questions like the organization’s cost of delayed retirement and how to enable timely exits from the workforce. Ultimately, this leads to new ways to streamline plans and costs.
Workforce Evaluation ‑ Retirement
Conducting an evaluation of an organization’s workforce is a key step in identifying the benefits that are working well and areas where they could be better. Workforce Evaluation ‑ Retirement is a simple, yet powerful tool that provides a unique perspective on the alignment between your benefits and total rewards program and your current and future workforce. This analysis is extremely useful in setting strategy and designing an effective program. The combination of our consultative approach, the unparalleled Gallagher compliance resources, and use of the Gallagher proprietary tools will result in a customized solution that we will work on executing together.