Benefits October 29, 2003

Aon: Pension Benefit Freezes a Reality for 20% of Plans

October 29, 2003 (PLANSPONSOR.com) - More than 20% of plan sponsors have either frozen pension plan benefits or are "actively considering" a plan freeze.
Reported by

Since January 1, 2001, 13% of the more than 1,000 private sector defined benefit plans reviewed by Aon Consulting have frozen their benefits. Going forward, 2% of the sample is planning a freeze by the end of the year and 6% are still considering such a move.

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Asked for the reason for the move:

  • 45% of respondents cited the amount of plan contributions
  • 39% mentioned the volatility of contributions
  • 35% pointed to the impact of pension plans on corporate expense.

The study was conducted during October 2003. More information is available at http://www.aon.com/about/publications/issues/2003_10pension_freeze_study.jsp .

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