An analysis of pension plan sponsorship among Fortune 1000 companies shows that the share of plan sponsors freezing their plans dropped to 4% in 2007, down from 7% in 2006.
“Undoubtedly some companies will freeze their pension plans in the future, but it appears that trend has peaked,” says Kevin Wagner, a senior retirement consultant at the firm. “With less regulatory uncertainty and funding volatility better under control, the environment is now a more positive one for pension plan sponsors.”
A separate study of 300 organizations with pension plan assets of more than US$100 million found that 59% of companies with a DB plan open to new hires have made a formal decision to keep their plans open. The remaining 41% have not said whether they’ve made a formal decision about their plans.
To comment on this story email craig.sebastiano@rci.rogers.com.