Some companies achieve benefits by hundreds of millions of dollars by a pension termination.

Question

Quizplus · Accepted Answer

It is true that some companies can achieve benefits by hundreds of millions of dollars by terminating a pension plan. This can be done by transferring the plan's liabilities to an insurance company or to the Pension Benefit Guaranty Corporation, which pays out benefits to retirees up to a certain limit. By doing so, the company can reduce its long-term financial obligations and free up capital for other uses.

Some Companies Achieve Benefits by Hundreds of Millions of Dollars