This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Seven In 10 Large U.S. Companies Now Offer Only 401(k) Retirement Plans To New Salaried Employees, Towers Watson Analysis Finds

Stocks in this article: TW

The number of large U.S. companies offering new salaried employees only a defined contribution (DC) plan, such as a 401(k) plan, continued to increase this year, according to an annual analysis by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. The analysis found that only three in 10 of these companies currently offer a defined benefit (DB) pension plan to newly hired salaried workers.

The Towers Watson analysis found that 70 companies in the Fortune 100 currently offer only a DC plan to new hires, compared with 67 companies at the end of last year and 63 companies at the end of 2010. Meanwhile, 11 companies continue to offer a traditional DB plan, versus 14 companies at the end of 2011, while 19 companies continue to offer a hybrid pension plan, such as a cash balance plan, the same number as at the end of 2011.

Fortune 100 companies’ retirement plan sponsorship, 1985 – 2012*

Type of retirement plan

  1985   1998   2002   2004   2005   2006   2007   2008   2009   2010   2011   Today

Defined benefit

  90   90   83   73   62   57   53   47   43   37   33   30
Traditional   89   67   48   38   32   28   27   23   19   17   14   11
Hybrid   1   23   35   35   30   29   26   24   24   20   19   19

Defined contribution only

  10   10   17   27   33   43   47   51   57   63   67   70

*Numbers indicate plans offered to new salaried hires at the end of each year. The “Today” column includes changes implemented between January 1, 2012, and June 30, 2012.

The analysis also noted that so far in 2012, there have been fewer retirement plan changes relative to 2011. Three companies switched from DB plan offerings for new salaried employees to an all-DC retirement environment. Additionally, one company converted its traditional DB plan to a hybrid plan.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs