Pension Plans - Overview & Strategies (Completed)

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Pension plans remain a vital component of retirement planning, yet their complexity requires a clear understanding of plan structures, funding rules, and payout strategies. This course provides accountants, tax professionals, and financial advisors with practical insights into defined benefit and defined contribution plans, cash balance arrangements, and other specialized pension options. You’ll learn how to evaluate lump sum versus annuity elections, apply regulatory limitations, and analyze plan features to optimize retirement outcomes for clients. The session also covers PBGC protections, diversification rules, and advisor considerations for ongoing plan review.

Stay ahead of regulatory changes and position yourself as a trusted resource for pension planning strategies.

Who Should Attend
If you work in finance, tax, wealth management, or employee benefits, this session will give you the tools to confidently guide clients through pension planning decisions.

Topics Covered

• Pension plan characteristics and mandatory funding rules
• Defined benefit vs. defined contribution pension plans
• In-service withdrawal restrictions and plan loan provisions
• Employer securities investment limits and diversification rules
• PBGC role and protections
• Lump sum vs. annuity payout analysis and influencing factors (interest rates, life expectancy, inflation, risk tolerance)
• Defined benefit pension plans: contribution ranges, actuarial calculations, ERISA requirements
• Cash balance pension plans: pay credit and interest credit structure, funding, and participant impacts
• Money purchase pension plans: fixed contribution formulas, limits, and features
• Target benefit pension plans: actuarial-based funding tied to retirement targets
• Phase-out of money purchase and target benefit plans in favor of profit-sharing
• Advisor considerations: interest rate impacts, ongoing plan review, diversification, commingled assets, PBGC safety net

Learning Objectives

• Explain the key characteristics and funding requirements of defined benefit and defined contribution pension plans
• Evaluate the financial trade-offs between lump sum payouts and lifetime annuity benefits
• Describe the structure, funding formulas, and participant impact of cash balance pension plans
• Identify features, benefits, and drawbacks of money purchase and target benefit pension plans
• Apply regulatory limitations, investment restrictions, and participant protection provisions to pension plan analysis

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic understanding of Pension Plans

Advance Preparation
None