Towers Perrin: Pension Plan Costs To Rise

NU Online News Service, Feb. 5, 1:40 p.m. – Towers Perrin, New York, an employee benefits consulting firm, says 2001 stock market losses and increases in liabilities will lead to big increases in costs for sponsors of traditional defined-benefit pension plans.

In recent years, stock market gains have pumped up assets at most defined-benefit plans, eliminating the need for many sponsors to make contributions.

This year, more employers will have to make pension contributions, marking an end to “funding holidays,” Towers Perrin says.