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 .