The number of U.S. companies considering closing or freezing their defined benefit pension plans has almost tripled since 18 months ago, a new survey finds.
Of 153 large U.S. employers with pension plans surveyed by Hewitt Associates Inc., Lincolnshire, Ill., 31% said they were more likely to consider closing their plans today, compared to 11% that said so in 2008. And 50% of those in this year’s survey said they were more likely to consider freezing their plans to existing participants, up from just 17% in 2008.
Hewitt also found most U.S. companies are moving to reduce their plans’ overall risk.