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.

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.” 

Rebecca Moore
editors@plansponsor.com