The Department of Labor's ERISA Advisory Council is considering the legal and plan design challenges of derisking defined benefit plans through annuity purchases or lump-sum distributions.
Council members at a hearing Wednesday heard from legal and benefits experts on the various reasons employers consider risk-transfer strategies and potential constraints.
Work group Chairman Richard Turner, vice president and deputy general counsel of Variable Annuity Life Insurance Co., said: “It's a very timely topic that involves important issues that will have to be addressed.”
Mr. Turner said the work group will hold another derisking hearing in August before making recommendations on next steps in a report to the secretary of labor later this year.
The derisking session is one of three the committee is holding. Locating missing participants was discussed on Tuesday; communications will be discussed on Thursday.
