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A large manufacturing company with a frozen defined benefit (DB) plan holding approximately $52 million in assets and 580 participants, including 160 eligible for a lump sum window, was eager to terminate the plan swiftly. However, the incumbent actuary/administrator estimated a 12-month timeline, which delayed critical savings and added administrative burden.
Enter October Three. Through an accelerated termination process, October Three completed the entire plan termination in just five months. This included full data transfer, participant reconciliation, and all required compliance steps, far outpacing the competitor’s standard procedures.
By settling plan obligations before the start of the next plan year, the client realized nearly $500,000 in overhead savings, including $356,000 in PBGC premiums alone. In addition, October Three executed a lump sum window with clear communication and accurate data, enhancing the participant experience.
Perhaps most impressive is the company’s $3.5 million in annuity purchase savings compared to the incumbent's projections. With the plan terminated and all administrative obligations resolved, the client eliminated ongoing management costs and secured substantial long-term financial benefits.
October Three offers full-service actuarial support, covering everything you need to manage your plan efficiently. Call our team today to learn how our actuarial services can help mitigate risks associated with your retirement plans.