Private Sector Pension Derisking and Participant Protections

This document is about the testimony provided by Karen Friedman of the Pension Rights Center on the risks to pension plan participants from de-risking transactions, such as the transfer of pension obligations to insurance companies through annuity purchases and the offering of lump sum distributions. Friedman recommends a range of protections for participants, including strengthening fiduciary standards for annuity selection, restricting insurers from offering lump sum conversions, and ensuring participant consent and dispute resolution processes.