Pension Funding: A Difficult Conversation for the HR Professional

The current economy requires an intensive discussion of the costs and benefits featured in a defined benefit plan. Companies should consider the impact of the new plan funding as well as benefit restriction rules and the impact this will have on the company’s current and future workforce. The purpose of this article is not to make the human resource (HR) professional an expert in the funding and benefit restriction rules for defined benefit pension plans but rather to help those in the HR function to recognize both the opportunities presented and the pitfalls that are created by the new environment.