TY - JOUR T1 - Hibernation versus Termination: <em>Evaluating the Choice for a Frozen Pension Plan</em> JF - Special Issues SP - 38 LP - 47 VL - 2015 IS - 1 AU - James M. Gannon, Jr. Y1 - 2015/09/21 UR - https://pm-research.com/content/2015/1/38.abstract N2 - As a frozen corporate defined-benefit pension plan matures, the need for a decision on exit strategy gets closer. One option is plan termination (the purchase of annuities for all participants, which effectively transfers all liabilities to an insurance company). Another strategy is “hibernation,” whereby the sponsor continues to manage the plan at a low level of cost and with some uncertainty about future cost. What are the primary considerations for plan sponsors evaluating these two options? This article offers guidelines and a framework for sponsors engaged in the decision-making process—those tasked with choosing between immediate plan termination and plan “hibernation.” To help guide sponsors’ analyses and decision-making processes, the author presents two case studies—sample results of stochastic modeling and sensitivity analysis of the variables represented in the stochastic modeling. ER -