The Pension Benefit Guaranty Corporation issued its Pension Insurance Data Book 2007, which shows that small plans have been terminating at a faster rate than larger plans.

For example, 75% of single-employer plans that terminated their plans had fewer than 25 participants, and more than 90% had fewer than 100 participants. Yet less than one percent of plans with 100 or more participants terminated the plan in 2007, according to the book, which outlines statistical trends for DB plans in the private sector.

Overall, 4.2% of single-employer plans insured by PBGC terminated their plans in 2007. The study examined 1,219 plans. The primary reasons why plan sponsors terminated the plans included:

  • The company was restructuring its retirement program
  • Adverse business conditions
  • The expense of plan administration
  • The sale of the company

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