Description: The current 50% reversion tax on the recovery of excess assets from a terminated defined benefit pension plan results in an asymmetric risk borne by pension plan sponsors. They are responsible for funding shortfalls but any surplus remaining at the termination of the plan is subject to punitive taxes. Pension reform will increase minimum funding levels to reduce the number of underfunded plans, which will increase the likelihood of surpluses that would be subject to punitive taxes. The Society of Actuaries’ Pension Section Research Team commissioned this study to quantify the impact of reversion taxes on pension plan funding.