Thursday, June 7, 2007

Trouble predicted for corporate pension plans

A global consulting firm that monitors the pension industry predicts a troubled future for an overwhelming percentage of private-sector pension plans in the United States.

A new study has reportedly predicted up to 75% of US corporate pension plans could be frozen or terminated within the next five years.

The findings from McKinsey & Company said the return of private defined benefit plans to health fund levels would rapidly boost the number of companies opting to freeze or terminate their plans from the current level of 25%.