The Survival Rate of Defined-Benefit Plans, 1987-1995

We look at the survival rate of defined-benefit pension plans with at least 500 participants over the period 1987-1995. We find that termination in favor of defined-contribution plans is a rare event and that the vast majority of these plans survive, albeit often under a different plan sponsor or in a new merged plan. Indeed, the frequency of mergers is an important feature in the pension market and partially explains the growing number of large defined-benefit plans.