To help employers better assess, implement and monitor (AIM) the frozen plans through to possible termination, Mercer’s “AIM to Exit” offering provides a set of comprehensive and integrated processes that enable sponsors of frozen pension plans to identify their most appropriate “exit strategy” and work to achieve their objectives over their desired time horizon.
According to a news release, “AIM to Exit” utilizes two concurrent processes:
- Financial Strategy and Execution to determine the exit or plan maintenance strategy, fund the plan, manage risk and execute effectively; and
- Administration and Compliance Readiness to identify and address administration challenges, gather participant information and maintain documentation.
The announcement said these processes include detailed steps to assess, implement, and monitor the plans through termination. The steps involved in terminating a plan through this process can help ensure that all final requirements are met, such as compliance with Internal Revenue Service and Pension Benefit Guaranty Corporation requirements, and completion of final benefit distributions, including annuity placement.
A Webcast on Mercer’s frozen plan solution is at http://www.mercer.com/webcasts.htm.