Groom principal Louis Mazawey weighed in on The Wall Street Journal (“WSJ”) article, “Senior KFC Executives Opt for Retirement as Interest Rates Hit Pension Payouts,” which covered recent senior management departures at the franchise due to increasing interest rates affecting their corporate pension plan’s lump sum payouts.
“For many companies, early retirements mean losing experienced employees, as well as the challenge of managing large cash-outs in corporate pension plans,” said Mazawey, as reported by WSJ. Adding that Mazawey stated that he is advising companies to try to persuade retirees to not all leave at once.
“I’m seeing clients concerned about a run on the bank,” Mazawey said. “It’s just bad on all fronts.”
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