According to the latest survey by the Committee on the Investment of Employee Benefit Assets, defined benefit pension assets at the nation’s 100-plus largest corporate sponsors reached $807 billion at the end of 1999 — the most recent CIEBA data available — an 11% increase from the previous year. But the growth in defined contribution plan assets outpaced that of traditional pension plans. Defined contribution assets grew 15% to $515 billion at the end of 1999, according to CIEBA.
"Once again, large companies have said they have not abandoned traditional defined benefit plans,” said Robert Angelica, chairman of the group and head of AT&T Investment Management Corp. "DC plan assets have grown faster, but DB plans still are the bedrock of retirement plans,” he said.
The survey also found that both kinds of plans were invested largely in stocks at year-end 1999, and that 80% of defined benefit plan assets were actively managed, while 40% of defined contribution plan assets were actively managed.
