January 6, 1999 (The Editor’s Desk is updated each business day.)
Defined contribution retirement
plans becoming more prevalent
In 1994-95, 66 percent of full-time employees
participated in one or more employer-provided retirement plans. Although the participation
rate was the same as in 1990-91, there was a shift in the type of plan: "defined
contribution" retirement plans were on the verge of overtaking "defined
benefit" pensions.
[Chart data—TXT]
In 1994-95, 39 percent of full-time employees participated in
"defined contribution" plans with employer contributions, up from 34 percent in
1990-91. In contrast, 42 percent of full-time employees participated in a "defined
benefit" plans, down from 48 percent in 1990-91.
Savings and thrift plans are the most common form of defined contribution plan, with 24
percent of all full-time employees participating in 1994-95. In these plans, participants
contribute a predetermined portion of earnings, all or part of which the employer matches.
Other defined contribution plans are deferred profit sharing; employee stock ownership;
and money purchase pension.
Data on retirement plans and other employee benefits are available from the BLS Employee Benefits Survey. Defined
benefit pension plans provide employees with a fixed retirement payment using
predetermined formulas. Defined contribution plans are accounts set up for each
participant, to which the employer and often the employee make fixed contributions; the
retirement payment is not fixed, but determined by these contributions. For additional
information, see "Factors Affecting Employer-provided Retirement
Benefits" (PDF 57K),
Compensation
and Working Conditions, Winter 1998.
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
.
Read more »