2012 Hot Topics in Retirement - Aon

34 Aon Hewitt
Plan sponsors continue to cite the expense of the pension plan (54%), cost
volatility (33%), and operational risk (33%) as the primary reasons for cutting
back on defined benefit plans.
Among respondents that are unlikely to make changes to their ongoing
defined benefit plans in 2012, the primary reason, reported by 14%, is the
belief that their plans fit the needs and/or preferences of their workforces. Fifteen
percent of respondents may evaluate the plan at a later date but have other
priorities for 2012, and 18% of employers reported that the plan already limits
future accruals to only a relatively small group of grandfathered employees.
Primary Reason Defined Benefit Employers Are Not
Making Changes in 2012
Reason
Plan is already frozen; no need to change
Plan already limits future accruals to small
group of grandfathered employees
Plan is an e�cient vehicle for delivering
retirement benefits
May evaluate plan at a later date but have
other priorities for 2012
Fits workforce needs and/or preferences
Plan is necessary to remain competitive
Plan is overfunded and costs little to nothing;
no reason to change
PPA and recent court ruling validate hybrid
plan design
Other
(n=180)
Percentage of Plans
22%
18%
16%
15%
14%
7%
2%
0%
7%