Friday, May 28, 2010
Tweet[IWS] Towers Watson: SHIFT from TRADITIONAL PENSION PLANS CONTINUES [26 May 2010]
IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Towers Watson
Press Release 26 May 2010
More Fortune 100 Companies Offering Account-Based Retirement Plans to New Salaried Employees, Towers Watson Analysis Finds
Shift Away From Traditional Pension Plans Continues
http://www.towerswatson.com/press/1956
NEW YORK, May 26, 2010 — The number of large U.S. companies that are replacing their traditional defined benefit (DB) plans with account-based retirement plans for new salaried employees continues to increase, according to a new analysis by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. Account-based plans include defined contribution (DC) plans, such as 401(k) plans, and hybrid pension plans, typically cash balance plans.
According to the Towers Watson analysis, 58 companies in the Fortune 100 currently offer only a DC plan to new hires, compared with 55 companies at the end of last year and 51 companies at the end of 2008. The most recent findings include three companies that announced this year that they will switch from a hybrid plan to a DC-only plan and three companies that are converting from a traditional DB to a hybrid plan. Meanwhile, 17 companies continue to offer a traditional DB plan, a decline from 20 at the end of last year and 24 at the end of 2008.
AND MORE…including TABLE….
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Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
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