EBRI Reports Number of Pension Plans Down 75%

The nonpartisan Employee Benefit Research Institute (EBRI) reported that the number of single-employer defined benefit pension plans declined 75% over the last 20 years. Single-employer plans traditionally cover non-union employees. The number of plans is less than 30,000, down from over 112,000 in 1988. The number of employees covered by these plans is 16.2 million, down 26% from 22 million in 1988.

Defined benefit pension plans guarantee the employee a fixed income after retirement. They are also insured by the Pension Benefit Guaranty Corporation.

These plans have been declining since the introduction of 401(k)'s, which require employees to contribute part of their earnings, and to have a knowledge of investment strategies to create enough wealth to provide a stream of income after retirement. The demise of pension plans have created more burden on Social Security, which threatens to cripple the U.S. budget.

According to the Bureau of Labor Statistics, even Social Security will not be enough to support the retiring Baby Boomers. The BLS predicts that "traditional retirements will be the exception rather than the rule".

Read EBRI's report, "EBRI Fact Sheet on PBGC".