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The Survival Rate of Defined‐Benefit Plans, 1987‐1995
Author(s) -
Ippolito Richard A.,
Thompson John W.
Publication year - 2000
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/0019-8676.00164
Subject(s) - plan (archaeology) , pension , pension plan , actuarial science , business , event (particle physics) , economics , finance , history , physics , archaeology , quantum mechanics
We look at the survival rate of defined‐benefit pension plans with at least 500 participants over the period 1987–1995. We find that termination in favor of defined‐contribution plans is a rare event and that the vast majority of these plans survive, albeit often under a different plan sponsor or in a new merged plan. Indeed, the frequency of mergers is an important feature in the pension market and partially explains the growing number of large defined‐benefit plans.