Majority of DB Participants Still Accruing Benefits

June 13, 2012 (PLANSPONSOR.com) – Nearly half (47%) of corporate defined benefit (DB) plans are still active and open to new hires.

In addition, 71% of all DB plan participants are still accruing benefits, according to SEI’s Pension Lifecycle Meter, a survey of more than 150 U.S. corporate DB plans.  

As of May, 24% of plans were closed to new entrants, but participants were still accruing benefits; 28% were “frozen” in that the plan is closed to new entrants, participants are no longer accruing benefits, but the termination process has not started; and 1% were “terminating” in that the plan is closed, accruals are frozen, and the termination process is underway.  

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Plan sponsors who indicated that their pension plans are currently closed, frozen, or terminating, were asked how recently they had made a design change to their plans, and only 12% indicated that they had made a change within the last 12 months. Three-quarters (75%) said that they had made a change more than two years ago. Of this group, one-third (33%) have plans larger than $500 million in assets.  

More information is available here.

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