For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Benefits May 11, 2011
60% of U.S. Corporate DB Plans Closed to New Hires
May 11, 2011 (PLANSPONSOR.com) - A new gauge from SEI that will provide updated statistics on the state of plan design for U.S. corporate defined benefit plans finds more than 60% are closed to new hires.
Reported by Rebecca Moore
SEI’s Pension Lifecycle Meter (May 2011) revealed:
- 36% are “active” in that the “plan is active and open to new hires;”
- 31% are “closed” in that the “plan is closed to new entrants, but participants are still accruing benefits;”
- 30% are “frozen” in that the “plan is closed to new entrants, participants are no longer accruing benefits, but the termination process has not started;” and
- 3% are “terminating” in that the “plan is closed, accruals are frozen, and the termination process is underway.”
SEI’s Pension Lifecycle Meter will be used to survey finance and human resource executives from a minimum of 100 U.S. corporate defined benefit plans on the current condition of their organizations’ pension plan, according to a press release. The findings will be updated twice a year, in May and November.
You Might Also Like:
Opinions |
Why PBGC’s Flat-Rate Premiums Need to Drop
Lowering premiums might spur some organizations to consider offering a defined benefit plan, which could be an additional form of...
None of the Largest US Corporate Pension Funds are Less Than 75% Funded, Per Milliman
The firm’s 2024 research found at least three pension funds with more than 140% funding levels.
Julie Su’s Nomination for Secretary of Labor Passes Senate Committee
The vote was held in a closed session and advanced by a party-line vote; meanwhile, the Senate committee chaired by...