Private Sector Pension De-risking and Participant Protections

This document is about the developments in recent decades that have made it challenging for U.S. corporations to manage pension risk, leading plan sponsors to turn to de-risking strategies such as lump sum offerings and group annuity purchases. It discusses the corporate finance perspective on pension risk, the various de-risking options available, and the participant considerations around the choice between lump sums and annuities. The document also proposes measures to better protect participants, such as requiring participant consent or reinsurance for annuity transfers.