With its new analysis showing the largest U.S. companies continued to shift from traditional pensions to 401(k) plans in 2005, Watson Wyatt Worldwide urges Congress to act on long-standing funding and regulatory issues affecting pensions. In its analysis of retirement plans at FORTUNE 100 companies, Watson Wyatt found that 37 percent offered a traditional pension plan to new hires in 2005, compared with 42 percent in 2004 and 50 percent three years ago. In 1985, nearly nine out of 10 FORTUNE 100 companies offered a traditional defined benefit plan.
|
Type of Plan |
1985 |
1998 |
2002 |
2004 |
2005 |
|
Traditional Pension Plan* |
89% |
68% |
50% |
42% |
37% |
|
Hybrid Pension Plan* |
1% |
22% |
33% |
33% |
27% |
|
Defined Contribution/401(k) only |
10% |
10% |
17% |
25% |
36% |