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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).
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Jun 1, 1993
Words:107
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