“Freezes” that limit or stop future pension benefits accruals now affect 21% of workers in single-employer U.S. defined benefit pension plans.
Researchers at the U.S. Government Accountability Office present that figure in a review of defined benefit plan benefits freezes.
The researchers have based their results on an analysis of 471 of the 7,804 defined benefit plan sponsors that have plans with 100 or more total plan participants.
Sponsors of 23% of all single-employer defined benefit plans have imposed a “hard freeze” that will eliminate all future benefits accruals, and 22% have imposed different kinds of freezes, the researchers report.
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About 83% of the sponsors of frozen plans now offer 401(k) plans or other alternatives to traditional defined benefit pension plans, but 11% do not, the researchers write.