PER

ROGR

GLOSSARY

For additional assistance on 

REGIONAL:

NEW YORK(

APRIL 201

NATIONALCOMPENSATIONSURVEYwww.bls.gov/ebs

of the remaining participants (11 percent) had a new de

fi ned-bene

fi t 

plan, while 1 percent had other types of alternative plans available.

All State and local government 

workers in frozen plans had alternative plan options available. The options were 1) a new de

fi nedbene

fi t plan, 2) an enhanced existing de

fi ned-contribution plan, 

and 3) a new de

fi ned-contribution 

plan. Unlike private industry, the alternative is more likely to be a new de

fi ned-bene

fi t plan—available to 95 percent of participants. 

(See table 2.)

●

from page 3

►

HEALTHPAID LEAVERETIREMENTBY WAGE LEVEL

The next issue will feature combined-bene

fi t plans.

Bene

fi t Series

TABLE 2

Defi ned-benefi t plan. A plan that 

provides employees with guaranteed retirement bene

fi ts that are 

based on a bene

fi t formula. A participant’s retirement age, length of 

service, and preretirement earnings may affect the bene

fi t received.

Defi ned-contribution plan. A 

plan that speci

fi es the level of 

employer contributions and places those contributions into individual employee accounts. Retirement bene

fi ts are based on the level of 

funds in the account at the time of retirement.

Frozen defi ned-benefi t plans. 

Frozen de

fi ned-bene

fi t plans are 

typically closed to new workers and/or may limit future bene

fi t 

accruals for some or all active plan participants. These plans may be of different types. Some may no longer allow participants to accrue additional bene

fi ts. Others may 

change the plan’s prospectivebene

fi t formula in such a way as 

to limit future bene

fi t accruals. 

Yet, others may use a prospectivebene

fi t formula to limit or cease 

accruals of bene

fi ts for some of the 

active participants.

Open defi ned-benefi t retirement 

plans. Open de

fi ned-bene

fi t retirement plans are plans that are available to new participants.

(in percent)

Category Private industry State and local government

Benefi t accrual

All existing participants continue to accrue benefi ts 75 99Some existing participants continue to accrue benefi ts

6 0

No existing participants continue to receive benefi ts 19 1

Alternatives to frozen plans

Alternatives to frozen plans available 94 100

New defi ned contribution plan 56

–

Enhanced existing defi ned contribution plan 28 1New defi ned benefi t plan 11 95

Other 1 –

NOTE: Dash indicates no workers in this category or data did not meet 

publication criteria. 

Percent of participants in de

fi ned-bene

fi t plans with bene

fi t 

accrual and alternatives to “frozen” plans, National Compensation Survey, March 2009 
from cover page►size. Establishments employing between 100 and 499 workers had 23 percent of workers participating in frozen plans, and workers in establishments with fewer than 50 employees had 11 percent.

Among all private industry workers participating in defi ned-benefi t 

plans, nonunion workers had a higher percent of participants in frozen plans (24 percent) than their union counterparts (10 percent). Also, participants in the lowest 10 percent of the earnings’ range were more likely to be in frozen plans 

States, 2008. The hourly wage value for the lowest 10 percent category was below $8.00. For the highest 10 percent category, the hourly wage value was greater than or equal to $36.43. Complete results of this survey are online at www.bls.gov/ncs/

ncswage2008.htm.) The percent of participants in frozen defi ned-benefi t plans differed among geographic areas. In the Pacifi c division, only 10 percent of defi ned-benefi t plans 

participants were in frozen plans, compared with the East North Central division, which had 26 percent of defi ned-benefi t plan participants 

in frozen plans

pants and local government partici- pants. Variability among categories within State and local government was typically less than in private industry with one exception. That exception was by geographic area. Published estimates for State and local government ranged from 2 percent in the South Atlantic divi- sion to 26 percent in New England. In private industry, the range was from 10 percent in the Pacifi c divi- sion to 26 percent in the East North Central division. (See table 1.) Length of time since plans were frozen 

more than 5 years ago, while thremaining 6 percent of participwere in plans that closed withithe past year. (See chart 1.) Tpattern was maintained for mothe characteristics that met pubtion criteria with a few exceptiincluding the utilities industry the Mountain division. The length of time since Sta

CHART 1 TABLE 1

Percent of participants in 

Compensation Survey, Ma

(in percent)

Category 

All employees By occupation 

Management, professional, and relatedService 

Sales and offi ce Natural resources, construction, and maintenanceProduction, transportation, and material movingBy bargaining status Union Nonunion 

By wage percentiles Lowest 10 percent Highest 10 percent 

NOTE: Dash indicates no worke

Defi ned benefi t “frozen plans”: Length of time since plans were frozen, National 

Compensation Survey, March 2009

1 year 2 to 5 years > 5 years

State and local government

Private industry

0 20 40 60 80 100

Percent
from cover page►size. Establishments employing between 100 and 499 workers had 23 percent of workers participating in frozen plans, and workers in establishments with fewer than 50 employees had 11 percent.

Among all private industry workers participating in defi ned-benefi t 

plans, nonunion workers had a higher percent of participants in frozen plans (24 percent) than their union counterparts (10 percent). Also, participants in the lowest 10 percent of the earnings’ range were more likely to be in frozen plans 

States, 2008. The hourly wage value for the lowest 10 percent category was below $8.00. For the highest 10 percent category, the hourly wage value was greater than or equal to $36.43. Complete results of this survey are online at www.bls.gov/ncs/

ncswage2008.htm.) The percent of participants in frozen defi ned-benefi t plans differed among geographic areas. In the Pacifi c division, only 10 percent of defi ned-benefi t plans 

participants were in frozen plans, compared with the East North Central division, which had 26 percent of defi ned-benefi t plan participants 

in frozen plans

pants and local government partici- pants. Variability among categories within State and local government was typically less than in private industry with one exception. That exception was by geographic area. Published estimates for State and local government ranged from 2 percent in the South Atlantic divi- sion to 26 percent in New England. In private industry, the range was from 10 percent in the Pacifi c divi- sion to 26 percent in the East North Central division. (See table 1.) Length of time since plans were frozen 

more than 5 years ago, while thremaining 6 percent of participwere in plans that closed withithe past year. (See chart 1.) Tpattern was maintained for mothe characteristics that met pubtion criteria with a few exceptiincluding the utilities industry the Mountain division. The length of time since Sta

CHART 1 TABLE 1

Percent of participants in 

Compensation Survey, Ma

(in percent)

Category 

All employees By occupation 

Management, professional, and relatedService 

Sales and offi ce Natural resources, construction, and maintenanceProduction, transportation, and material movingBy bargaining status Union Nonunion 

By wage percentiles Lowest 10 percent Highest 10 percent 

NOTE: Dash indicates no worke

Defi ned benefi t “frozen plans”: Length of time since plans were frozen, National 

Compensation Survey, March 2009

1 year 2 to 5 years > 5 years

State and local government

Private industry

0 20 40 60 80 100

Percent
PER

ROGR

GLOSSARY

For additional assistance on 

REGIONAL:

NEW YORK(

APRIL 201

NATIONALCOMPENSATIONSURVEYwww.bls.gov/ebs

of the remaining participants (11 percent) had a new de

fi ned-bene

fi t 

plan, while 1 percent had other types of alternative plans available.

All State and local government 

workers in frozen plans had alternative plan options available. The options were 1) a new de

fi nedbene

fi t plan, 2) an enhanced existing de

fi ned-contribution plan, 

and 3) a new de

fi ned-contribution 

plan. Unlike private industry, the alternative is more likely to be a new de

fi ned-bene

fi t plan—available to 95 percent of participants. 

(See table 2.)

●

from page 3

►

HEALTHPAID LEAVERETIREMENTBY WAGE LEVEL

The next issue will feature combined-bene

fi t plans.

Bene

fi t Series

TABLE 2

Defi ned-benefi t plan. A plan that 

provides employees with guaranteed retirement bene

fi ts that are 

based on a bene

fi t formula. A participant’s retirement age, length of 

service, and preretirement earnings may affect the bene

fi t received.

Defi ned-contribution plan. A 

plan that speci

fi es the level of 

employer contributions and places those contributions into individual employee accounts. Retirement bene

fi ts are based on the level of 

funds in the account at the time of retirement.

Frozen defi ned-benefi t plans. 

Frozen de

fi ned-bene

fi t plans are 

typically closed to new workers and/or may limit future bene

fi t 

accruals for some or all active plan participants. These plans may be of different types. Some may no longer allow participants to accrue additional bene

fi ts. Others may 

change the plan’s prospectivebene

fi t formula in such a way as 

to limit future bene

fi t accruals. 

Yet, others may use a prospectivebene

fi t formula to limit or cease 

accruals of bene

fi ts for some of the 

active participants.

Open defi ned-benefi t retirement 

plans. Open de

fi ned-bene

fi t retirement plans are plans that are available to new participants.

(in percent)

Category Private industry State and local government

Benefi t accrual

All existing participants continue to accrue benefi ts 75 99Some existing participants continue to accrue benefi ts

6 0

No existing participants continue to receive benefi ts 19 1

Alternatives to frozen plans

Alternatives to frozen plans available 94 100

New defi ned contribution plan 56

–

Enhanced existing defi ned contribution plan 28 1New defi ned benefi t plan 11 95

Other 1 –

NOTE: Dash indicates no workers in this category or data did not meet 

publication criteria. 

Percent of participants in de

fi ned-bene

fi t plans with bene

fi t 

accrual and alternatives to “frozen” plans, National Compensation Survey, March 2009