Thirty-seven of the Fortune 100 companies offered traditional defined benefit plans in 2005, compared with 42 in 2004 and 50 in 2002, according to a survey by Watson Wyatt Worldwide. Also, 36 companies in the Fortune 100 offered only defined contribution plans, up from 25 in 2004 and 17 in 2002, confirmed Alan Glickstein, senior consultant at Watson Wyatt. Mr. Glickstein said the trend of employers going the DC route is continuing, with many employers continue to think DB plans are expensive.
Companies with hybrid pension plans declined to 27 last year, from 33 in 2004. Mr. Glickstein said the decrease is attributed to the lack of regulatory clarity of cash balance plans.