Pension funding dropped even further in 2012, despite the efforts of plan sponsors who contributed more to their plans in an attempt to bridge their funding gaps.
According to new research by Towers Watson, the funded status of pension plans at 429 of the Fortune 1000 companies ended the year at 75 percent, compared to 78 percent at the end of 2011.
Since 2007, there has been a steady movement of plan sponsors freezing or closing down their pension plans. This movement was driven by the financial volatility the current market has had on pension plans. Glickstein doesn’t believe the rate of closures and frozen plans will increase beyond what it has been because most of the employers who were considering such a move have already started the process, he said.
Many employers still “value pension plans and continue to have them.”