With all the bleeding the recession has caused in defined contribution plans, it can be easy to forget that defined benefit plans have been recession ravaged as well. DB sponsors are taking steps to stop the bleeding, according to the pros at Watson Wyatt, undergoing what one consultant called a “seismic shift from business as usual.”
According to WW, 67% of companies have made or are planning policy changes this year and next to DB asset allocations, specifically: decreasing target equity allocations to 47.8%, a nearly 10 percentage-point drop since last year. WW also finds that almost three-quarters (73%) of companies have hired or fired managers since June 2008.
