HITTING HALF: FLEXIBILITY LEADS MANY EMPLOYERS AROUND WORLD TO ADOPT DC PLANS.(defined contribution pension plans)

Pensions & Investments, May, 1999 by Jacobius, Arleen

Defined contribution plans accounted for half of all employer-sponsored retirement arrangements in 14 countries last year, a new survey by William M. Mercer Cos. Inc., New York, shows. In the United States, 60% of all employer-sponsored retirement arrangements in 1998 were defined contribution plans, the survey noted.

Mercer predicts that will grow to 70% by 2003. Although each country's reasons varied, the report on 38 countries showed these general forces driving the adoption of defined contribution programs: * Flexible employment arrangements are overtaking the traditional long- term, permanent employer-employee relationship. * Employees want lower employer pension costs and a say-so over their retirement investments. * The risk of an eventual...

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