Wednesday, April 15, 2009

Survey: Nearly half of Defined Benefits plans closed to new participants

Forty-four percent of companies with defined benefit plans have closed their plans to new participants, 3% are planning to do so in the next 18 months, 10% are considering it, and 43% have no such plans, according to a Towers Perrin survey.

Sixty-nine percent of companies with DB plans have no intention of making any changes affecting current employees.

Among companies offering defined contribution plans, fewer than 10% have suspended or plan to suspend company matching contributions, another 19% are considering it, and the rest of those surveyed have no plans to do so, according to the survey.

The survey of 480 officials at large and midsize U.S. companies was conducted in February.

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