Defined benefit

Defined contribution

Hybrid - DB and DC arrangement in the same pension plan.

Further information - pension plans may either be (i) established and modified by the employer on a unilateral basis or (ii) established on a bilateral basis and agreed with the employees in the terms of their individual agreements or Collective Bargaining Agreements and then may only be modified with the consent of the employees.

It is important to identify early on the type of pension plan associated with an in-scope entity, if any, as the pension plan can impact deal timings, purchase price and corporate reorganization steps. This will also be key in connection with the applicable form for the transfer of employees in the transaction (i.e., employer substitution, termination and rehiring).