AICPA: CPA executives believe companies cannot continue funding pensions to cover employees' retirement.

The vast majority of CPAs serving as corporate CEOs, CFOs, controllers and in other executive positions believe American companies cannot continue providing pensions that adequately cover their employees' retirement years, according to the results of a new AICPA survey. Moreover, the survey showed many CPA executives believe reductions in pension benefits pose a threat to a company's ability to attract and retain the talent they need to compete.

The AICPA surveyed more than 3,100 of its members in business and industry during the month of Apr. Of them, 59.5% work for private companies, and 21.4% are employed in public corporations. The remaining respondents are in the not-for-profit and government arenas.

When asked if U.S. companies could continue providing employees with pensions that adequately cover their retirement years, nearly three in four (74%) of the respondents said no. More than half (54%) indicated the erosion of these benefits would hurt recruiting and retention efforts. A slightly higher number (57%) believe rising healthcare costs are the biggest barrier to a company's ability to offer pension benefits; nearly a third (30%) said the pressures to compete in the marketplace outweighed the pressures to provide retirement benefits.

Virtually all the respondents said their companies offer some type of retirement benefit today, with the majority offering a 401(k) plan with matching contributions (65.6%). Less than 5% said their companies offer no retirement plan at all.