Fate of defined benefit plans
Publication Date : February 20, 2017
The flood of cheap money unleashed by central banks’ quantitative easing efforts to combat the global financial crisis has only added to the pressures that corporate and public plan sponsors face.
Stories from the report
U.S. corporate defined benefit plans have been closing and freezing benefit accruals for decades, with a number of industry experts pointing to the very regulations meant to protect them as a top contributing factor.
Experts point to ERISA and the Pension Protection Act of 2006 as contributing to the demise of private-sector pension plans, but public plans are not expected to follow their corporate brethren anytime soon.
As 401(k)s become the standard for private-sector workers, they are slowly adding defined benefit plan-like features.
Charts and data