More than half of U.S. corporate defined benefit plans are closed to new entrants, according to an SEI survey.
Forty-six percent of U.S. corporate DB plans are active and open to new hires, while 29% are closed, 24% are frozen and 1% are being terminated, the survey shows.
Last May, the survey, SEI's Pension Lifecycle Meter, showed only 36% of corporate DB plans were active. Different corporate plans were surveyed this time than in May, according to Jon Waite, director, investment management advice and chief actuary at SEI Institutional Group.
“Oddly, compared to last time, we're seeing a higher percentage that are active now,” Mr. Waite said. But “this time around is in line with what we've seen the last couple years. Plan sponsors made the decision years ago to start freezing and closing plans.”
The SEI Pension Lifecycle Meter is a biannual survey aiming to provide a “snapshot” of the status of corporate pension plans, Mr. Waite said in a telephone interview.
The survey of 100 companies, none of which was an SEI client, was conducted in November and December.