Institutional Model

Perspective

Ready to terminate your DB plan—now what?

Exploring the investment-related considerations of the defined benefit plan termination process.

Key Takeaways

The termination process can be lengthy—in some cases, exceeding a year from start to finish.
Additionally, the total amount of funds required to terminate the plan will be unknown until a few days before the final payments are made. Those payments include the amount needed to purchase annuities from an insurer and the amount required to deliver lump sums to participants who choose to receive them.
All during this lengthy process, maintaining the funded position as best as possible is important to avoid unintended consequences.
This paper explores the investment-related considerations of the termination process, including how to position assets once the decision to terminate has been made, and what dynamic changes should be considered as the termination process unfolds.

Get the full white paper

Ready to terminate your DB plan - now what?

Next steps to consider

Pension Solutions

Take a tour of Fidelity’s pension solutions, all designed to meet plan sponsors’ specific goals and needs.

Learn more

Outsourced CIO

Explore outsourced CIO solutions tailored to your needs, powered by Fidelity’s deep investment capabilities and proprietary research.

Learn more

Custom Investment Solutions

Discover how our investment solutions can be tailored to meet your unique goals and objectives.

Learn more

For important information, see the full linked content.

1072750.3.0

E8122F1AFB7E4AE79E1D8B0EAD4AE7E3

Past performance is no guarantee of future results.

This information is intended for the sole use of institutional investors. Retail investors and any other persons who are not institutional investors should not act or rely on this information.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client’s individual situation and reach out to an investment professional, if applicable.

Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management Trust Company (FMTC) are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. Fidelity Institutional Asset Management (FIAM) investment management services and products are managed by the Fidelity Investments companies of FIAM LLC, a U.S. registered investment adviser, or Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company. FIAM products and services may be presented by FDC LLC, a non-exclusive financial intermediary affiliated with FIAM and compensated for such services.