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.