Printer Friendly

Companies drop retirement plans as costs, rules increase.

A survey of 1,469 midsized companies with fewer than 1,000 employees conducted by Grant Thornton revealed 22% had terminated employee retirement plans.

Of those abandoning their plans, 33% cited onerous government regulations and 27% blamed high funding costs. Among the other major reasons for plan termination, administrative costs were cited by 19% and mergers or acquisitions were reported by 13%.

Among retirement plans offered by midsized companies, 401(k) plans were the clear program of choice. Sixty-one percent of the respondents with retirement plans offered 401(k) plans, compared with 33% offering pension plans. Another 26% offered a profit-sharing plan other than a 401(k).
COPYRIGHT 1993 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Journal of Accountancy
Article Type:Brief Article
Date:Jun 1, 1993
Previous Article:AICPA issues new simplification tool for tax lawmakers.
Next Article:FASB votes to draft stock compensation proposal.

Related Articles
"SERPs" up: retirement benefits for senior executives; why supplemental plans for top management are an increasing important part of compensation...
Conversion of unused vacation days into retirement plan contributions.
Maximizing retirement plan benefits.
Taxation of IRA distribution to a treaty country resident.
The safe-harbor solution.
Navigating the maze of the required minimum distribution rules: new proposed regulations on required minimum distributions go a long way toward...
Big changes, big benefits: making sense of the new pension reform laws.
An overview of recent developments in employee benefits, including qualified and nonqualified retirement plans, welfare benefits and executive...
Total compensation: benefits are important.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters