Steep Rise in Defined-Benefit Pension Costs for Many Companies National Underwriter (Life and Health Financial Services Edition) (02/03/03) Vol. 107, No. 5 p.33; De Simone, Marcella
According to a recent survey conducted by Deloitte & Touche L.L.P., 40 percent of executives predict that pension expenses will rise by more than 50 percent this year, and 20 percent are expecting increases of between 26 percent and 50 percent. Twelve percent of executives plan to convert their defined benefit plans into other forms that are less costly. Additionally, executives are seeking ways to reduce overall benefits' costs, and this may not bode well for agents and brokers. Companies may reduce benefits, but experts do not believe that pensions will fade out; Deloitte benefits practice leader David Hilko expects companies to retain their pensions if they now offer them.