Study Shows Shift from DB to DC

Among benefits most directly related to economic security, employers with 50 or more employees are most likely (96%) to offer 401(k) or 403(b) retirement plans.

In addition, the Families and Work Institute’s 2012 Study of Employers found 83% of employers made contributions to employees’ individual retirement plans. Only 22% of employers offer defined benefit pensions.  

Small employers are less likely than large ones to offer benefits that enhance employees’ economic security when those benefits have direct cost implications. The costs of such benefits may be considerable and are more easily borne by large than small employers.   

Relatively few employers (10%) offer both phased retirement and defined benefit pension plans. Among those that do, small employers are just as likely as large ones to allow employees to phase into retirement without reducing pension payouts.   

The study found employers in 2012 are less likely (22%) than those in 2005 (34%) to provide defined benefit pension plans or assistance in obtaining public benefits (20% in 2005, compared with 15% in 2012). However, employers in 2012 are more likely (96%) than employers in 2005 (83%) to provide 401(k), 403(b) or other retirement plans, and are also more likely (83%) than employers in 2005 (74%) to make contributions to employees’ retirement plans.  

The complete study report is at