Big Firms Continue to Abandon Pension Plans

Of the nation’s 100 largest companies, only 31 offer traditional pension plans, according to a study by Watson Wyatt Worldwide, the Associated Press reports. In 2005, 35 of the 100 largest companies offered pension plans. In 1985, 89 did.

And more than 40%, or 42 companies, offer new workers only the choice of a defined contribution plan. By comparison, 37 offered DC plans in 2005 and only 10 did so in 1985.

The remaining 27 firms are using hybrid defined benefit plans that offer pensions, but far less generous than traditional pension plans. That’s pretty steady with the 28 companies that offered hybrid plans in 2005 but up significantly from the one company that had a hybrid plan in 1985.

Watson Wyatt said it expects the number of hybrid plans to continue to grow.

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