Private Pension Plans

• Private pensions currently cover less than half of the American workforce

• Contributions to private plans have been declining for a number of years

  • In 1989, plan terminations increased 37% and new plan creations decreased 67%
  • In 1994, there was a decrease in private pension plan contributions of approximately $2 million from 1993

• The main reason for this trend is the complexity of pension regulations

  • Tax Reform Act of 1986
  • Pension qualification rules enacted in 1989

Sources: Kelley, Christopher T., UNCERTAINTY IN THE GOLDEN YEARS: THE GROWING DEMANDS UPON THE AMERICAN RETIREMENT SECURITY SYSTEM, 2 Elder L.J. 225; Private Pension Plan Bulletin, Abstract of 1994 Form 5500 Annual Reports, U.S. Dept. of Labor.

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