More than half (56%) of the 151 financial executives on SEI Investments' Pension Management Research Panel said their companies have closed, terminated or frozen defined benefit plans or might do so this year. Also, 78% think proposed legislative reforms will make plan management more complicated, and 62% said they're not ready to handle those reforms; 72% of those surveyed said they are reviewing current processes and pension plan management.
About one-third of the executives said their pension plan has become a distraction to their firm's core competencies and another third said they no longer view the defined benefit plan as a necessary benefit. Also, 78% said they have fielded inquiries from their CEOs or boards regarding the plans' long-term strategies.
The executives manage defined benefit plans ranging in size from $25 million to $3.5 billion. The Pension Management Research Panel is an information resource for members, "providing statistics, insights and opinions around current and emerging issues involving pension plans," according to a statement from SEI.