Experts project that by 2010 only 36% of employers with more than 1,000 employees will offer defined benefit pensions, down from 55% today, according to a study released Thursday by Diversified Investment Advisors, a retirement plan provider in Purchase, N.Y.
The study, done in the third quarter, examined trends in midsize to large retirement plans - those with $25 million to $1 billion of assets. Forty-two retirement plan experts from 32 organizations responded to a questionnaire.
Employers will try to ensure that employees have adequate defined contribution plan coverage by offering automated plan features, the survey respondents said. Fifty-nine percent of respondents expect plan sponsors to have adopted immediate eligibility by 2010; 53% expect automatic enrollment will be offered; 47% foresee immediate vesting; and 35% believe automatic deferral increases will be offered.
