Though companies have been trending away from defined benefit pension plans, a new study from Towers Watson shows that their erosion has reached a stable plateau. According to Institutional Investor, 68% of respondents that offer a defined benefit plan said they planned to keep offering it for two to three years.
After two or three more years, it’s unlikely that companies would change their plans at all. Despite the expense, traditional pension plans help recruit and retain staff and provide workplace planning by helping employees retire at the right time.
But pension plans are still changing. More than half of the companies in the survey with defined benefit plans said they have converted to hybrid plans.
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