According to the data, 46% are “active” in that the “plan is active and open to new hires,” and 29% are “closed” in that the “plan is closed to new entrants, but participants are still accruing benefits.”
Only a quarter of pension plans are no longer accruing benefits, as 24% are “frozen,” which means the “plan is closed to new entrants, participants are no longer accruing benefits, but the termination process has not started,” and 1% are “terminating,” which means the “plan is closed, accruals are frozen and the termination process is underway.”
The Pension Lifecycle Meter provides a biannual snapshot of the plan design stages of U.S. corporate defined benefit plans. The findings are the result of surveying finance and human resource executives from more than 100 U.S. corporations.