The number of private sector defined contribution plans and participants continues to expand, while defined benefit plans distributed more than they took in, according to just-published statistics from the Department of Labor (DOL).
According to the Private Pension Plan Bulletin Abstract of 2012 Form 5500 Annual Reports, in 2012, while the total active participant count increased from 90.2 million to 91.3 million, the number of active participants in DB plans decreased for the 13th straight year, by 4.2% in 2012.
On the other hand, the number of active participants in DC plans increased to 75.5 million in 2012, up 2.5% from 73.7 million in 2011 — and the number of 401(k) type plans increased from 513,000 to 516,000 in 2012, and the number of active participants in 401(k) type plans grew by 3.0%.
The report is significant, not only for the breadth of detailed plan statistics, but because it represents the official report of the nation’s private pension system based on official Form 5500 filings.
Contributions
The DOL notes that in 1978, when legislation was enacted authorizing 401(k) type plans that allow employees to contribute to their own retirement plans on a pre-tax basis, participants contributed 29% of the contributions to DC plans and only 11% of total contributions to all DB and DC pension plans. However, in the years following 1978, employee contributions to DC plans steadily rose to a peak of approximately 60% in 1999, where it has remained.
In 2012, DC plan contributions increased by 6.9% (to $352.8 billion), while DB plan contributions decreased by 4.8% (to $128.7 billion). Overall, contributions to pension plans increased by 3.5% in 2012, to $481.6 billion.
Distributions
In 2012, pension plans disbursed $532.9 billion for payment of benefits, with $199.1 billion being disbursed from DB plans and $333.9 billion from DC plans. These payments, which were made either directly to retirees, beneficiaries and terminating employees or to insurance carriers for payment of benefits, reflect an increase from 2011 of 15.4% for DB plans and 11.5% for DC plans.
Overall, pension plans disbursed $51.4 billion more than they received in contributions (10.7% of contributions), while DB plans disbursed $70.4 billion more than they collected in contributions, and DC plans disbursed $19.0 billion less than they received in contributions.
The number of DB plans that report being fully frozen decreased in 2012 to 10,200 from 10,400 in 2011. The share of DB plan assets in plans that were frozen jumped from 12.0% in 2011 to 13.9% in 2012.
The total number of pension plans decreased in 2012 to approximately 677,000 plans, a 1.0% decrease over 2011. Within those totals, the number of DC plans declined by 0.8%, while the number of DB plans decreased by 3.4%.
However, the total amount of assets held by pension plans increased 10.0% to $6.98 trillion in 2012. DB plan
According to the Private Pension Plan Bulletin Abstract of 2012 Form 5500 Annual Reports, in 2012, while the total active participant count increased from 90.2 million to 91.3 million, the number of active participants in DB plans decreased for the 13th straight year, by 4.2% in 2012.
On the other hand, the number of active participants in DC plans increased to 75.5 million in 2012, up 2.5% from 73.7 million in 2011 — and the number of 401(k) type plans increased from 513,000 to 516,000 in 2012, and the number of active participants in 401(k) type plans grew by 3.0%.
The report is significant, not only for the breadth of detailed plan statistics, but because it represents the official report of the nation’s private pension system based on official Form 5500 filings.
Contributions
The DOL notes that in 1978, when legislation was enacted authorizing 401(k) type plans that allow employees to contribute to their own retirement plans on a pre-tax basis, participants contributed 29% of the contributions to DC plans and only 11% of total contributions to all DB and DC pension plans. However, in the years following 1978, employee contributions to DC plans steadily rose to a peak of approximately 60% in 1999, where it has remained.
In 2012, DC plan contributions increased by 6.9% (to $352.8 billion), while DB plan contributions decreased by 4.8% (to $128.7 billion). Overall, contributions to pension plans increased by 3.5% in 2012, to $481.6 billion.
Distributions
In 2012, pension plans disbursed $532.9 billion for payment of benefits, with $199.1 billion being disbursed from DB plans and $333.9 billion from DC plans. These payments, which were made either directly to retirees, beneficiaries and terminating employees or to insurance carriers for payment of benefits, reflect an increase from 2011 of 15.4% for DB plans and 11.5% for DC plans.
Overall, pension plans disbursed $51.4 billion more than they received in contributions (10.7% of contributions), while DB plans disbursed $70.4 billion more than they collected in contributions, and DC plans disbursed $19.0 billion less than they received in contributions.
The number of DB plans that report being fully frozen decreased in 2012 to 10,200 from 10,400 in 2011. The share of DB plan assets in plans that were frozen jumped from 12.0% in 2011 to 13.9% in 2012.
The total number of pension plans decreased in 2012 to approximately 677,000 plans, a 1.0% decrease over 2011. Within those totals, the number of DC plans declined by 0.8%, while the number of DB plans decreased by 3.4%.
However, the total amount of assets held by pension plans increased 10.0% to $6.98 trillion in 2012. DB plan
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