Retirement Plan Feasibility Study

What a good one includes

• A high-level executive summary that clearly outlines the recommended path forward and the core trade-offs of each proposed scenario.
• Multi-year cash flow projections and balance sheet impact analyses under optimistic, baseline, and pessimistic economic scenarios.
• A detailed regulatory compliance assessment mapping the proposed plan against current IRS, ERISA, and Department of Labor guidelines.
• A granular breakdown of transition costs, including legacy plan wind-down expenses, administrative setup fees, and communication budget.
• An employee impact analysis demonstrating how the restructured plan affects retirement readiness across different age and tenure cohorts.
• A dedicated risk management matrix highlighting legislative, market, and fiduciary risks alongside practical mitigation strategies.

Common mistakes to avoid

• Relying on static investment return assumptions instead of running stochastic, real-world market simulations.
• Failing to model the administrative and legal fees required to execute the transition, which can quickly erode projected savings.
• Overlooking the impact of plan changes on workforce morale and retention, especially among mid-to-late career employees who rely heavily on legacy benefits.
• Ignoring the complex compliance hurdles of legacy plan termination or modification, which can trigger costly IRS penalties or litigation.

Frequently asked questions