As the funded status of corporate pension plans deteriorates, more companies are edging away from those obligations. A recent report from Towers Watson shows that the number of companies with a frozen pension plan is up 9.5% from last year's level.
Freezing a pension plan means the company continues to operate the plan but stops accruing benefits for workers.
The Towers Watson report shows that 208 Fortune 1000 companies currently have at least one frozen defined-benefit pension plan, up from 190 companies in 2009. In 2004, just 45 of the companies had a frozen plan.
Meanwhile the number of companies with defined-benefit plans has fallen, with just 586 of the Fortune 1000 companies currently sponsoring such a plan, down from 607 in 2009 and 633 in 2004.