Pensions and Retirement Training Course on Plan Terminations and Buyouts
Master Pensions Retirement Training with expert training. 10 Days course with certification. Comprehensive training program. Online & in-person. Enroll now!
Pensions And Retirement Courses10 DaysCertificate Included
Duration
10 Days
Mode
Online & Physical
Certificate
Included
Language
English
Course Overview
This course provides participants with a comprehensive understanding of pension plan terminations and buyouts. It covers legal, regulatory, actuarial, and financial considerations, enabling participants to manage plan closures, transfer liabilities, and ensure members’ benefits are secured while minimizing risks for plan sponsors.
Secure enrollment • Professional certificate included
Learning Objectives
By the end of the course, participants will be able to:
Understand the legal and regulatory framework for pension plan terminations and buyouts.
Evaluate financial and actuarial implications of plan closures.
Assess options for settling obligations, including buyouts and annuitization.
Conduct valuations and risk assessments for terminated plans.
Develop communication strategies for affected members and stakeholders.
Ensure compliance with fiduciary, accounting, and reporting requirements.
Implement best practices in plan termination and buyout processes.
Course Content
Module 1: Introduction to Plan Terminations and Buyouts Definition and types of plan terminations (standard, distress, and full buyout) Importance and challenges of plan closure for sponsors and members Overview of legal, regulatory, and accounting requirements Case study: Lessons from high-profile plan terminations Group discussion: Key considerations for terminating a pension plan Module 2: Legal and Regulatory Framework Regulatory requirements for plan termination and buyouts (local and international) Fiduciary duties of trustees and plan sponsors Procedures for notifying regulators and plan members Compliance considerations for DB, DC, and hybrid plans Exercise: Mapping legal obligations for a hypothetical termination Case study: Regulatory pitfalls and lessons learned Module 3: Actuarial Valuation for Terminations Calculating final liabilities for terminating plans Determining accrued benefits and past service costs Adjusting for early retirement, survivor benefits, and indexation Sensitivity analysis and scenario testing for termination funding Practical exercise: Performing a termination valuation for a sample DB plan Discussion: Common valuation challenges and solutions Module 4: Funding and Solvency Assessment Evaluating plan assets vs. liabilities prior to termination Assessing funding deficits and surplus allocation Options for addressing underfunded and overfunded plans Exercise: Funding strategy planning for plan closure Case study: Solvency management in terminated pension plans Module 5: Buyout and Risk Transfer Options Understanding annuity buyouts and third-party risk transfer Pension risk transfer mechanisms: bulk annuities, insurance buyouts, and buy-in arrangements Evaluating costs, benefits, and risks of buyouts Exercise: Comparing buyout proposals for a hypothetical plan Case study: Best practices in pension buyout transactions Module 6: Communication and Stakeholder Management Developing member communication strategies for plan closure or buyout Engaging trustees, regulators, and sponsors effectively Handling disputes, queries, and member concerns Workshop: Drafting communication materials and FAQs for members Group discussion: Managing reputational and legal risks Module 7: Accounting and Reporting Considerations Accounting treatments for terminated plans and buyouts (IFRS, IPSAS, local standards) Reporting obligations to regulators and auditors Treatment of gains, losses, and residual liabilities in financial statements Practical exercise: Preparing accounting entries for plan termination and buyout Case study: Reporting best practices and lessons learned Module 8: Tax Implications of Terminations and Buyouts Tax treatment of lump-sum distributions and annuity buyouts Employer and employee tax obligations Regulatory requirements for tax reporting Exercise: Calculating tax implications for different termination scenarios Discussion: International considerations for multinational plans Module 9: Risk Management and Contingency Planning Identifying risks in plan terminations and buyouts (financial, operational, legal) Mitigation strategies and contingency planning Ensuring ongoing fiduciary responsibility until final settlement Workshop: Developing a risk mitigation plan for a terminating plan Case study: Lessons from failed or problematic plan terminations Module 10: Case Studies and Practical Applications Real-world examples of plan terminations and buyouts Group simulation: Complete termination process including valuation, funding, buyout, and communication Developing actionable recommendations for sustainable closure strategies Lessons learned, best practices, and key takeaways Final discussion, review, and certification
