Rising premiums assessed by the Pension Benefit Guaranty Corp., combined with longer life expectancy, are prompting more employers to consider scaling back or even shutting down their defined benefit plans within the next year, according to an Aon Hewitt survey.
Nearly two-thirds of the employers surveyed said they plan to take some action in 2015. Almost half — 44 percent — said they already have offered terminated employees a lump-sum payout.
Aon expects that trend to continue, as 47 percent said they expect to offer a lump-sum to terminated participants in 2015.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
