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Alternatives to Frozen Defined Benefit Pension Plans

by Scott F. Curtin

Bureau of Labor Statistics

Originally Posted: August 28, 2009

Since their introduction in the 1980s, 401k plans and other types of defined contribution plans have become the primary

means of retirement savings, leading many employers to freeze their current defined benefit plan and provide alternatives,

such as a new defined benefit plan, a new defined contribution plan, or an enhanced existing defined contribution plan.

Introduction

Defined benefit pension plans have played an integral role in developing retirement protection for millions of American

workers. These pension plans have allowed retirees to secure monthly income for life, with payments based on service and

salary. Such plans in the United States were initially developed to promote job stability and create a more career-minded

labor force.1 Since their introduction in the 1980s, 401k plans--a type of defined contribution plan--have grown to become the

a primary means of retirement savings, leading employers to replace their defined benefit plans with defined contribution

plans for both current and new employees.

Many employers have opted to freeze their current defined benefit plan and provide an alternative. Alternatives available to

employees include a new defined benefit plan, a new defined contribution plan, or an enhanced existing defined contribution

plan.2 With the number of defined benefit plans steadily decreasing and frozen pension plans increasing, this migration could

have major negative implications for those workers in the later stages of their career, where plan contributions may be at their

highest. Employees are and will continue to be forced to reevaluate their retirement savings needs as employers alter their

benefits package.

When a defined benefit plan is frozen, the employer may restrict entry into the plan and limit future contributions. The degree

to which contributions and entry is limited will depend on the type of freeze. In some cases, an employee may stop accruing

benefits in the event of a freeze, but the plan will continue in operation, protecting the benefits already accrued. Employers

continue to make required contributions to fund accrued benefits.

BLS Frozen Plan Data

The Bureau of Labor Statistics (BLS) recently began collecting data on frozen defined benefit pension plans, including details

pertaining to the percent of workers participating in frozen plans, benefit accruals, and enrollment alternatives for employees

in frozen plans. As chart 1 and table 1 show, data from the March 2008 National Compensation Survey (NCS) on employee 

benefits indicate that a fifth of all private industry workers participating in a defined benefit plan are affected by a freeze.3 A

plan is considered frozen if the plan is closed to new workers or the plan ceased accruals for some or all plan participants.
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Prior to the availability of the NCS data, information on frozen plans came mostly from a Government Accountability Office

(GAO) study released in 2008. GAO found that about half of all plan sponsors in their study population had one or more

frozen defined benefit plans. Overall, about 3.3 million active participants in the study population, who represent about 21

percent of all active participants in the single-employer defined benefit system, are affected by a freeze.4 The March 2008

National Compensation Survey benefits data show that 21 percent of private industry workers had access to a defined benefit

plan and 20 percent participated in a defined benefit plan (See table 2). According to a 2005 study by the Pension Benefit

Guaranty Corporation, the number of private sector defined benefit plans peaked in the mid-1980s at 112,000, compared with

about 30,000 at the time of the study.5

The type of freeze will determine what restrictions are in place on the current pension plan. As chart 2 shows, among those

workers enrolled in a frozen plan, the majority (76 percent) were in plans under a “soft freeze,” which implies that the plan is

closed to new entrants, but all current participants continue to accrue benefits. Another 21 percent were under a “hard

freeze,” which implies that a plan is closed to new entrants and current participants no longer accrue additional benefits. (See 

table 3.)
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The remainder of this article concentrates on defining and discussing alternatives for those affected by a freeze in their

benefit plan.

Plan Alternatives

Of the private industry workers affected by a freeze, 96 percent had an alternative made available to them to help offset

losses from their frozen defined benefit plan. Employees may be offered one of the following alternative retirement plans: a

new defined benefit plan, an enhanced existing defined contribution plan, or a new defined contribution plan. (See table 4 for

a detailed look into plan alternatives by worker and establishment characteristics and by wage percentiles.)

New defined benefit plan. As can be seen in chart 3, of all private industry workers participating in a frozen defined benefit

plan, roughly 11 percent had a new defined benefit plan made available to them. Although this option is not common, workers

in three groups--unions, large establishments, and the goods-producing industries--are given this alternative at a higher rate

than other workers. Defined benefit plans tend to be more prevalent among union workers than among nonunion workers,

which helps explain why private industry union workers participate in a new defined benefit pension plan at a rate that is 4

times higher than nonunion workers.6 Defined benefit plans place more of the responsibility on the employer, whereas with

other retirement savings plans, the employees assume more responsibility and risk in managing their retirement funds.7

Among part-time workers participating in a frozen defined benefit plan, a very low percentage are offered a new defined

benefit plan. According to the March 2008 National Compensation Survey benefits data, only 11 percent of part-time private

industry workers had access to a defined benefit plan, 14 percentage points less than full-time workers.8 Part-time workers

are more commonly associated with service occupations, lower wage jobs, and small establishments, as opposed to whitecollar and blue-collar occupations, higher wage jobs, and large establishments, which tend to have more full-time workers. As

a way to cut cost and divert risk, employers, especially those of small establishments, may reduce the availability of defined

benefit pensions to part-time employees and instead, offer an alternative.

Enhanced existing defined contribution plan. Within defined contribution plans, contributions, whether they come from the

employee or the employer (or both), are added to the employee's individual account. Examples of defined contribution plans
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include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans.9 Defined contribution plans

require the employee to actively participate in building and maintaining their retirement savings.

As chart 4 shows, 31 percent of private industry workers affected by a defined benefit plan freeze are offered an enhanced

existing defined contribution plan. Some employers may already have a defined contribution plan and can provide an

incentive to those affected by a defined benefit freeze to switch to the defined contribution plan. Unlike the new defined

benefit plan alternative, an enhanced existing defined contribution plan is more readily available to nonunion workers and

workers within the service-providing industries.

New defined contribution plan. Participation in defined contribution plans has increased significantly over the years.

Defined contribution plans have rapidly grown into the leading retirement savings option for private industry workers.

Employers have continued to move forward with less reliance on defined benefit plans and more on defined contribution

plans. Forty-three percent of private industry workers participate in a defined contribution plan, which is an increase of 8

percentage points when compared with 1992-93 data.10

Of the options that might be available to employees in frozen defined benefit plans, a new defined contribution plan was the

most prevalent. As can be seen in chart 5, of the private industry workers whose defined benefit plan was frozen, 54 percent

were given the option of a new defined contribution plan. This option was widespread across worker and establishment

characteristics, most notably among part-time workers and in small establishments (1 to 99 workers).
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For many, plan freezes have and will continue to have a major influence on how employees approach their retirement

savings in the future. Although recent data from BLS show that workers affected by a freeze tend to have alternative plans

made available to them, freezes in general consistently affect workers across industry and occupation. BLS will continue to

track and research data regarding frozen defined benefit plans, with the intent of providing updated data annually.

Scott F. Curtin

Economist, Division of Compensation Data Estimation, Office of Compensation and Working Conditions, Bureau of Labor

Statistics.

Telephone: (202) 691-6233; E-mail: Curtin.Scott@bls.gov. Notes

1 Stephen P. McCourt, “Defined Benefit and Defined Contribution Plans: A History, Market Overview and Comparative Analysis,” International

Foundation of Employee Benefit Plans, February 2006; available on the Internet at http://www.ifebp.org/PDF/webexclusive/06feb.pdf.

2 BLS currently collects data regarding enrollment alternatives for employees in frozen plans. Those alternatives include a new defined benefit

plan, a new defined contribution plan, an enhanced existing defined contribution plan, or other. This article examines each of these alternatives

except for “other.” For more information regarding other retirement plans that could be made available to employees in frozen plans, visit the

Internal Revenue Service website at http://www.irs.gov/retirement/content/0,,id=111422,00.html. 3 The National Compensation Survey produces comprehensive data on the incidence (the percentage of workers with access to and

participation in employer provided benefit plans) and provisions of selected employee benefit plans.

4 The Government Accountability Office conducted a study on defined benefit pension plan freezes and found that about half of all sponsors in

their study population had one or more frozen defined benefit plans. Overall, about 3.3 million active participants in the study population, who

represent about 21 percent of all active participants in the single-employer defined benefit system, are affected by a freeze. See Defined

Benefit Pensions: Plan Freezes Affect Millions of Participants and May Pose Retirement Income Challenges, GAO-08-817 (Government

Accountability Office, July 2008); available on the Internet at http://www.gao.gov/new.items/d08817.pdf.
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5 An Analysis of Frozen Defined Benefit Plans (Pension Benefit Guaranty Corporation, December 21, 2005), p. 1; available on the Internet at

http://www.pbgc.gov/docs/frozen_plans_1205.pdf.

6 NCS data show that 67 percent of Union workers chose to participate in a defined benefit plan in March 2008, considerably more than the 15

percent of nonunion workers. See National Compensation Survey: Employee Benefits in the United States, March 2008, Bulletin 2715 (Bureau

of Labor Statistics, September 2008), table 2; available on the Internet at http://www.bls.gov/ncs/ebs/benefits/2008/ownership/private/

table02a.pdf.

7 For more information on the various types of retirement plans, see “Retirement Plans, Benefits & Savings: Types of Retirement Plans,” on

the U.S. Department of Labor website at http://www.dol.gov/dol/topic/retirement/typesofplans.htm.

8 See National Compensation Survey: Employee Benefits in the United States, March 2008, Bulletin 2715 (Bureau of Labor Statistics,

September 2008), table 2; available on the Internet at http://www.bls.gov/ncs/ebs/benefits/2008/ownership/private/table02a.pdf.

9 For more information regarding types of retirement plans, see “Retirement Plans, Benefits & Savings: Types of Retirement Plans,” on the

U.S. Department of Labor website at http://www.dol.gov/dol/topic/retirement/typesofplans.htm.

10 See Stephanie L. Costo, “Trends in retirement plan coverage over the last decade,” Monthly Labor Review, February 2006; available on the

Internet at http://www.bls.gov/opub/mlr/2006/02/art5full.pdf.

Table 1: Defined benefit retirement plan: Percent of participants in plans that have frozen benefits, private industry

workers, National Compensation Survey, March 2008

Open plans Frozen plans

All workers 80 20

Worker characteristics

Management, professional, and related 81 19

Management, business, and financial 79 21

Professional and related 82 18

Service 80 20

Sales and office 75 25

Sales and related 61 39

Office and administrative support 80 20

Natural resources, construction, and maintenance 91 9

Construction, extraction, farming, fishing, and forestry 96 4

Installation, maintenance, and repair 86 14

Production, transportation, and material moving 79 21

Production 78 22

Transportation and material moving 81 19

Full time 81 19

Part time 75 25

Union 87 13

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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Open plans Frozen plans

Nonunion 76 24

Average wage within the following percentiles (1)

Less than 10 46 54

10 to under 25 66 34

25 to under 50 78 22

50 to under 75 84 16

75 to under 90 83 17

90 or greater 80 20

Establishment characteristics

Goods-producing industries 81 19

Construction 100

Manufacturing 75 25

Service-providing industries 80 20

Trade, transportation, and utilities 71 29

Wholesale trade 79 21

Retail trade 55 45

Transportation and warehousing 82 18

Information 81 19

Financial activities 88 12

Finance and insurance 87 13

Credit intermediation and related activities 90 10

Insurance carriers and related activities 88 12

Professional and business services 84 16

Education and health services 83 17

Health care and social assistance 83 17

1 to 99 workers 85 15

1 to 49 workers 88 12

50 to 99 workers 81 19

100 workers or more 79 21

100 to 499 workers 75 25

500 workers or more 81 19

Geographic areas (2)

Metropolitan areas 80 20

Nonmetropolitan areas 84 16

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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Open plans Frozen plans

New England 78 22

Middle Atlantic 84 16

East North Central 75 25

West North Central 83 17

South Atlantic 78 22

East South Central 66 34

West South Central 82 18

Pacific 88 12

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.

Table 2: Retirement benefits: Access, participation, and take-up rates, private industry workers, National

Compensation Survey, March 2008

All Retirement Benefits Defined Benefits

Access Participation Take-up rate Access Participation Take-up rate

All workers 61 51 83 21 20 96

Worker characteristics

Management, professional, and related 76 68 90 29 28 97

Management, business, and financial 82 77 94 35 34 97

Professional and related 73 64 88 26 26 96

Service 37 25 68 9 8 95

Sales and office 65 55 84 20 19 94

Sales and related 60 46 77 15 13 89

Office and administrative support 68 60 88 23 22 96

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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All Retirement Benefits Defined Benefits

Access Participation Take-up rate Access Participation Take-up rate

Natural resources, construction, and

maintenance 62 52 84 26 25 98

Construction, extraction, farming, fishing,

and forestry 58 47 82 24 24 100

Installation, maintenance, and repair 67 58 86 28 26 95

Production, transportation, and material

moving 65 54 82 26 25 96

Production 68 57 84 27 27 98

Transportation and material moving 63 51 81 25 24 94

Full time 71 60 85 25 24 96

Part time 32 23 73 11 10 90

Union 85 80 95 69 67 97

Nonunion 59 48 81 16 15 95

Average wage within the following percentiles 

(1)

Less than 10 25 14 57 4 4 87

10 to under 25 41 28 68 9 8 89

25 to under 50 63 50 80 16 15 95

50 to under 75 70 61 87 25 24 97

75 to under 90 79 73 91 40 38 97

90 or greater 84 78 92 39 38 96

Establishment characteristics

Goods-producing industries 71 62 86 30 29 98

Construction 55 45 83 18 18 100

Manufacturing 78 69 87 34 33 98

Service-providing industries 59 49 82 19 18 95

Trade, transportation, and utilities 67 54 81 22 20 91

Wholesale trade 76 66 87 16 16 98

Retail trade 61 46 75 17 15 88

Transportation and warehousing 73 63 86 41 36 88

Utilities 94 93 99 85 84 98

Information 78 73 94 49 48 98

Financial activities 79 73 92 42 40 97

Finance and insurance 88 82 94 50 48 97

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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All Retirement Benefits Defined Benefits

Access Participation Take-up rate Access Participation Take-up rate

Credit intermediation and related

activities 92 87 94 56 55 98

Insurance carriers and related activities 83 77 93 45 44 96

Real estate and rental and leasing 47 39 84 11 11 98

Professional and business services 54 46 85 13 13 98

Professional and technical services 71 63 89 9 9 100

Administrative and waste services 33 24 74 10 10 99

Education and health services 64 54 84 21 20 96

Educational services 64 58 91 16 14 92

Junior colleges, colleges, and

universities 85 77 91 18 16 89

Health care and social assistance 64 53 83 22 21 97

Leisure and hospitality 30 18 59 3 2 96

Accommodation and food services 29 17 57 3 3 96

Other services 40 31 79 8 8 93

1 to 99 workers 45 37 81 9 9 96

1 to 49 workers 41 34 82 8 7 96

50 to 99 workers 58 45 79 14 13 95

100 workers or more 79 67 85 35 33 96

100 to 499 workers 73 60 83 24 23 95

500 workers or more 87 76 87 47 45 96

Geographic areas (2)

Metropolitan areas 62 53 84 23 22 96

Nonmetropolitan areas 57 44 77 14 14 96

New England 56 49 87 20 19 95

Middle Atlantic 62 55 90 27 26 97

East North Central 64 56 87 26 25 96

West North Central 64 56 87 23 22 95

South Atlantic 63 50 79 18 17 95

East South Central 65 45 69

West South Central 56 45 80 17 17 96

Mountain 63 51 80 18 17 94

Pacific 58 49 83 22 21 96

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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Table 3: Defined benefit frozen retirement plans: Percent of participants covered by a freeze, private industry workers,

National Compensation Survey, March 2008

Retirement benefit accrual

All Participants Some Participants No Participants

All workers 76 3 21

Worker characteristics

Management, professional, and related 66 - - Management, business, and financial 67 3 30

Professional and related 66 - - Service 79 - - Sales and office 86 3 11

Sales and related 91 1 7

Office and administrative support 82 - - Natural resources, construction, and maintenance 66 - - Construction, extraction, farming, fishing, and forestry 97 - -

Installation, maintenance, and repair 56 - - Production, transportation, and material moving 74 - - Production 71 - - Transportation and material moving 77 - - Full time 73 3 23

Part time 91 - - Union 78 4 18

Nonunion 75 3 22

Average wage within the following percentiles (1)

Less than 10 85 - - 10 to under 25 93 - - 25 to under 50 81 3 16

50 to under 75 71 - - 75 to under 90 75 3 23

90 or greater 65 4 32

Establishment characteristics

Goods-producing industries 71 5 23

Manufacturing 71 5 23

Service-providing industries 77 2 21

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

(3) Less than 0.5 percent.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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Retirement benefit accrual

All Participants Some Participants No Participants

Trade, transportation, and utilities 90 - - Wholesale trade 80 - - Retail trade 96 - 4

Transportation and warehousing 71 - - Utilities 86 - -

Information 58 - - Financial activities 57 8 35

Finance and insurance 58 8 34

Credit intermediation and related activities 63 - -

Insurance carriers and related activities 72 - - Professional and business services 54 - - Administrative and waste services - - 87

Education and health services 86 - - Educational services 91 - - Junior colleges, colleges, and universities 91 - - Health care and social assistance 86 - - 1 to 99 workers 74 - - 1 to 49 workers 74 - - 50 to 99 workers 74 - - 100 workers or more 76 3 21

100 to 499 workers 82 1 17

500 workers or more 71 4 25

Geographic areas (2)

Metropolitan areas 76 3 21

Nonmetropolitan areas 71 - - New England 51 2 47

Middle Atlantic 72 (3) 28

East North Central 76 - - West North Central 67 - - South Atlantic 79 - - East South Central 76 - - West South Central 87 - - Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

(3) Less than 0.5 percent.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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Retirement benefit accrual

All Participants Some Participants No Participants

Mountain 94 2 3

Pacific 74 - - Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

(3) Less than 0.5 percent.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.

Table 4: Alternative defined benefit retirement plan: Percent with alternative plan by worker and establishment

characteristics, private industry workers, National Compensation Survey, March 2008

No plan

options

available

Plan options

available

Enrollment options for employees in frozen plans

New defined

benefit plan

Enhanced existing

defined contribution

plan

New defined

contribution plan Other

All workers 4 96 11 31 54 2

Worker characteristics

Management, professional,

and related 4 96 12 38 47 1

Management, business, and

financial 3 97 11 42 42 3

Professional and related - 96 12 35 50 - Service - 100 - 37 55 2

Sales and office 4 96 6 33 59 2

Sales and related 3 97 - 43 51 - Office and administrative

support 5 95 9 24 64 2

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
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No plan

options

available

Plan options

available

Enrollment options for employees in frozen plans

New defined

benefit plan

Enhanced existing

defined contribution

plan

New defined

contribution plan Other

Natural resources,

construction, and

maintenance

- 98 22 29 45 - Construction, extraction,

farming, fishing, and

forestry

- 100 40 - 54 -

Installation, maintenance,

and repair - 97 16 36 43 - Production, transportation,

and material moving - 95 19 18 57 2

Production - 93 22 16 56 - Transportation and material

moving - 98 - - 60 - Full time 4 96 13 31 51 2

Part time - 99 1 28 70 - Union - 98 28 12 57 3

Nonunion 4 96 7 36 53 1

Average wage within the

following percentiles (1)

Less than 10 - 100 - - 58 - 10 to under 25 - 100 - 41 57 - 25 to under 50 6 94 4 27 64 2

50 to under 75 6 94 7 29 59 1

75 to under 90 3 97 28 25 43 3

90 or greater 2 98 12 37 47 4

Establishment characteristics

Goods-producing industries 5 95 19 16 57 3

Manufacturing 5 95 19 16 57 3

Service-providing industries 3 97 9 36 53 1

Trade, transportation, and

utilities - 100 9 34 55 3

Wholesale trade - 100 46 - 40 - Retail trade - 100 - 47 52 - Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
U.S. BUREAU OF LABOR STATISTICS COMPENSATION AND WORKING CONDITIONS

Page 15

No plan

options

available

Plan options

available

Enrollment options for employees in frozen plans

New defined

benefit plan

Enhanced existing

defined contribution

plan

New defined

contribution plan Other

Transportation and

warehousing - 100 - - 79 15

Utilities - 100 63 - - -

Information - 96 14 49 42 2

Financial activities 15 85 10 44 31 - Finance and insurance 16 84 10 42 32 - Credit intermediation

and related activities - 92 17 42 34 -

Insurance carriers and

related activities 27 73 6 - 46 - Professional and business

services - 100 - 67 - - Professional and technical

services - 100 - - - - Administrative and waste

services - 100 - 89 - - Education and health

services - 95 - - 82 - Educational services - 99 - - 90 - Junior colleges,

colleges, and

universities

- 99 - - 90 - Health care and social

assistance - 95 - - 82 - Leisure and hospitality - 100 - - - - Accommodation and food

services - 100 - - - - Other services - 100 - 100 - - 1 to 99 workers - 100 2 38 59 - 1 to 49 workers - 99 4 33 63 - 50 to 99 workers - 100 - 44 55 - 100 workers or more 4 96 13 29 53 2

100 to 499 workers 4 96 6 31 58 2

500 workers or more 5 95 19 28 48 2

Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.
U.S. BUREAU OF LABOR STATISTICS COMPENSATION AND WORKING CONDITIONS

Page 16

No plan

options

available

Plan options

available

Enrollment options for employees in frozen plans

New defined

benefit plan

Enhanced existing

defined contribution

plan

New defined

contribution plan Other

Geographic areas (2)

Metropolitan areas 3 97 12 31 53 2

Nonmetropolitan areas - 90 - - 61 - New England - 86 - - 42 - Middle Atlantic - 92 10 43 - 4

East North Central - 100 21 23 57 - West North Central - 98 - 38 50 4

South Atlantic 8 92 7 17 68 3

East South Central - 100 2 - 52 - West South Central - 98 12 39 51 - Mountain - 100 - - 85 - Pacific 1 99 - 45 40 - Footnotes:

(1) The percentile groupings are based on the average wage for each occupation surveyed, which may include workers both above and

below the threshold. The percentile values are based on the estimates published in "National Compensation Survey: Occupational Earnings

in the United States, 2007."

(2) The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and

Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, the District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee;

West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West

North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho,

Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington.

NOTE: A dash indicates no workers in the category or data did not meet publication criteria.

Data for Chart 1: Defined benefit retirement plan: Percent of participants in plans that have frozen benefits, private

industry workers, National Compensation Survey, March 2008

Characteristic Percent

All workers 20

Full-time workers 19

Part-time workers 25

Union workers 13

Nonunion workers 24

1-99 workers 15

100 workers or more 21
U.S. BUREAU OF LABOR STATISTICS COMPENSATION AND WORKING CONDITIONS

Page 17

Data for chart 2: Defined benefit frozen retirement plans: Percent of participants accruing benefits, private industry

workers, National Compensation Survey, March 2008

Characteristics Percent

All participants still accruing 76

Some participants accruing 3

No participants accruing 21

Data for chart 3: Alternative defined benefit retirement plan: Percent of workers with new defined benefit plan, by

worker and establishment characteristics, private industry workers, National Compensation Survey, March 2008

Characteristic Percent with plan alternative Percent with new defined benefit plan alternative

All workers 96 11

Full-time 96 13

Part-time 99 1

Union 98 28

Nonunion 96 7

Goods-producing 95 19

Service-providing 97 9

1-99 workers 100 2

100 workers or more 96 13

Data for chart 4: Alternative defined benefit retirement plan: Percent with enhanced existing defined contriubtion plan

by worker and establishment characteristics, private industry workers, National Compensation Survey, March 2008

Characteristic Percent with plan alternative Percent with enhanced existing defined contribution plan alternative

All workers 96 31

Full-time 96 31

Part-time 99 28

Union 98 12

Nonunion 96 36

Goods-producing 95 16

Service-providing 97 36

1-99 workers 100 38

100 workers or more 96 29

Data for chart 5: Alternative defined benefit retirement plan: Percent of workers with new defined contribution plan, by

worker and establishment characteristic, private industry workers, National Compensation Survey, March 2009

Characteristic Percent with plan alternative Percent with enhanced existing defined contribution plan alternative

All workers 96 54

Full-time 96 51

Part-time 99 70

Union 98 57

Nonunion 96 53

Goods-producing 95 57
U.S. BUREAU OF LABOR STATISTICS COMPENSATION AND WORKING CONDITIONS

Page 18

Characteristic Percent with plan alternative Percent with enhanced existing defined contribution plan alternative

Service-providing 97 53

1-99 workers 100 59

100 workers or more 96 53

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