Just two years ago over two-thirds (68%) offered a traditional pension.
Despite the recent controversy regarding cash balance programs, 32% of the Fortune 100 offer a hybrid plan today, compared with 22% just two years ago.
At the same time, the number of firms offering only a defined contribution/401(k) plan has grown to 16% from 10% in 1998. An equal number offered those programs in 1985.Distribution of Pension Plans Among Fortune 100 Companies
|Type of Plan||Percentage of Companies|
|Traditional Pension Plan*||89%||68%||52%|
|Hybrid Pension Plan*||1%||22%||32%|
|Defined Contribution/401(k) Only||10%||10%||16%|
|* Most of these firms also have a 401(k)|
The study defined hybrid pension plans as defined benefit plans where benefits are expressed in terms of immediate lump sum payments, rather than annuities after retirement.
This includes cash balance and pension equity plans.