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October 10, 2006 at 01:32 PM
About 17% of employers with fully operating defined benefit pension plans may close the plans as a result of provisions in the new Pension Protection Act.
Researchers in the Stamford, Conn., office of Towers Perrin Inc. have published those results in a summary of an informal survey of 126 high-level financial executives at large U.S. employers.
The PPA has increased the minimum plan funded ratio to 100%, from 90%.
About half of survey participants say they expect their companies to offer similar pension benefits once the PPA provisions take effect, but, in addition to the 17% who say their companies will be closing their plans, 14% say their companies will freeze benefits for current participants or continue plans but reduce future benefit accruals.
