A Rare Moment for Defined Benefit Plans: Why Now Is the Time to Act

A Rare Moment for Defined Benefit Plans: Why Now Is the Time to Act

Hospitals and healthcare sponsors of defined benefit (DB) plans face a unique window of opportunity. Current market conditions—marked by strong equity performance, high interest rates, and competitive annuity pricing—have significantly improved funded status for many plans.

These factors create an ideal environment for sponsors to take strategic action, whether by terminating frozen plans, reducing volatility in ongoing plans, or optimizing enterprise risk. Healthcare organizations have an added advantage: the ability to manage pension assets alongside endowments, enabling a holistic approach to investment risk and return. Acting now can strengthen balance sheets and enhance long-term financial sustainability.

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Understand how these rare conditions create opportunities for DB plans not seen in years.
Learn why acting now can lock in gains, reduce volatility, and optimize funding before market dynamics shift.
Discover how choices made in the next 6–12 months could shape plan sustainability for the next decade.

For Institutional Use Only. Not for Public Distribution.

This material was created to provide information on the subjects covered but should not be regarded as a complete analysis of these subjects. The information provided cannot take into account all the various factors that may affect your particular situation. The services of an appropriate professional should be sought regarding before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.

Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc., a non-investment firm and subsidiary of Arthur J. Gallagher & Co., is a licensed insurance agency that does business in California as “Gallagher Benefit Services of California Insurance Services” and in Massachusetts as “Gallagher Benefit Insurance Services.”