US - The Center for Retirement Research (CRR) at Boston College said DB contributions had more than tripled from US$30bn to $100bn this decade.
The CRR attributed the sharp rise to a “perfect storm” of a plummeting stock market and low interest rates that hit traditional DB schemes earlier this decade.
The CRR added that the stock market recovery, which began in 2003, had fuelled a substantial rebound in pension assets, as assets in 401(k)-type plans outstripped assets of traditional plans for the first time.
The CRR based these findings on new pension information gathered from official returns that companies filed with the US Department of Labor.
This new “Form 5500 data” provides details on private pension trends in 2001-2003. Currently, the official Labor Department tabulations are available only through 2000, said CRR director Alicia Munnell.
“This new data shows us exactly what was happening in a tumultuous time for private pensions,” she said.
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