Defined benefit plan lump-sum windows can help to reduce the risk associated with unpredictable defined benefit plan costs by offering one-time, lump-sum cash-out opportunities to certain plan participants. While lump-sum windows have advantages for participants and plan sponsors, they also present disadvantages and there are many legal issues to consider when implementing a lump-sum window.

To learn about the legal issues to consider and whether the risks of offering a lump-sum window outweigh the advantages, see Practice Note, Defined Benefit Plan Lump-sum Windows.