New funding rules and market turmoil could increase cash costs in defined benefit pension plans sponsored by law firms

October 2010
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New funding rules and market turmoil could increase cash costs in defined benefit pension plans sponsored by law firms

At a glance

This article discusses how law firms with certain types of qualified defined benefit pension plans may face additional cast requirements in 2009 and 2010.

Law firms with certain types of qualified defined benefit pension plans may face additional cast requirements in 2009 and 2010. New stricter funding rules apply as falling funding levels will lead to significant additional cash costs. Law firms should asses the impact of this anticipated cash hit on their business and review investment strategies and alternative methods of providing benefits to partners and staff.