Benefits October 29, 2003
Aon: Pension Benefit Freezes a Reality for 20% of Plans
October 29, 2003 (PLANSPONSOR.com) - More than 20%
of plan sponsors have either frozen pension plan benefits or
are "actively considering" a plan freeze.
Reported by Eric Hazard
Since January 1, 2001, 13% of the more than 1,000 private sector defined benefit plans reviewed by Aon Consulting have frozen their benefits. Going forward, 2% of the sample is planning a freeze by the end of the year and 6% are still considering such a move.
Asked for the reason for the move:
- 45% of respondents cited the amount of plan contributions
- 39% mentioned the volatility of contributions
- 35% pointed to the impact of pension plans on corporate expense.
The study was conducted during October 2003. More information is available at http://www.aon.com/about/publications/issues/2003_10pension_freeze_study.jsp .
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