PT - JOURNAL ARTICLE AU - Scott Jarboe AU - Matt McDaniel TI - Terminated Vested Cashouts: <em>Addressing Key Concerns</em> DP - 2014 Sep 21 TA - Special Issues PG - 52--57 VI - 2014 IP - 1 4099 - https://pm-research.com/content/2014/1/52.short 4100 - https://pm-research.com/content/2014/1/52.full AB - Defined benefit pension plans have been opting to transfer risk from their balance sheets through lump sum cashout windows and annuity purchases from insurers, but the most common form of risk transfer to date has been lump sum cashout windows for terminated vested participants. This can be done either as a permanent plan feature or as a one-time window. This article discusses the advantages to the plan sponsor of a lump sum cashout, and notes that increases in interest rate levels and improvements in funded status during 2013 may make 2014 and beyond an opportune time to capitalize on these advantages. The article also identifies some common concerns—such as low interest rates and the incurring of opportunity cost—and how they might be addressed to allow for a successful risk transfer project.