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Pension Plan

Pension Plan. Sample comprised of 393 randomly selected HR professionals. Analyzing 393 responses of 2877 emails sent, 2605 emails were received (response rate = 15%). Survey fielded October 24 – October 31, 2006; presentation generated on November 6, 2006. Margin of error is +/- 5%.

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Pension Plan

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  1. Pension Plan • Sample comprised of 393 randomly selected HR professionals. • Analyzing 393 responses of 2877 emails sent, 2605 emails were received (response rate = 15%). • Survey fielded October 24 – October 31, 2006; presentation generated on November 6, 2006. • Margin of error is +/- 5%.

  2. Does your organization have a pension plan? n = 392

  3. Does your organization have a pension plan?

  4. Defined Benefit Pension Plan

  5. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? Note: Percentage may not total 100% due to rounding

  6. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? n = 114

  7. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? n = 81 Note: Percentage may not total 100% due to rounding

  8. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? n = 86

  9. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? n = 83

  10. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? n = 80 Note: Percentage may not total 100% due to rounding

  11. Which of the following changes has your organization made, plans to make or does not plan to make to its defined benefit pension plan in the next 12 months? Note: Percentage may not total 100% due to rounding

  12. Other changes organizations have made or plan to make to their defined benefit pension plan in the next 12 months. • We are looking into a Profit Sharing plan, in which contributions would be made one time per year. • Employees hired after 1/1/07 will be automatically enrolled in to the 401K plan at 3% of their salary. Contributions will then be matched 100% up to 6%. Current employees will remain in the defined pension plan; the plan will be frozen 12/31/07. Effective 1/1/08, current employees, when retired, will receive a payout from the defined plan as well as monies accrued from contributions made to the 401K plan. also effective 1/1/08. current employees will have 100% match of all contributions up to 6% and have 3% of salary automatically contributed by the company. • Union employees will continue in their defined benefit plans until the contracts expire and changes can be negotiated. Non-union employees - defined benefit plan frozen 1/01/06, replace by defined contribution and profit-sharing plan. • This is a "grandfathered" plan. No changes in works for plan itself but we're proposing to restrict eligibility for retiree health plan participation to those age 60 with min 10 years tenure - while DB plan allows earlier retirement. Also discussed but rejected: Employee contribution to plan. • Effective 01/01/04, new hires were not eligible for our defined benefit pension plan. New hires are now automatically enrolled in a 401(k) with a company basic contribution. • We have made 23 out of 24 investment fund and manager changes, added a Roth option with our 304b and 401a plans.

  13. Defined Contribution Pension Plan

  14. Changes organizations have made, plans to make or does not plan to make to their defined contribution pension plan in the next 12 months?

  15. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution pension plan in the next 12 months? n = 206

  16. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution pension plan in the next 12 months? n = 173

  17. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution pension plan in the next 12 months? n = 155

  18. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution pension plan in the next 12 months? n = 165

  19. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution pension plan in the next 12 months? n = 149

  20. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution pension plan in the next 12 months? n = 165

  21. Which of the following changes has your organization made, plans to make or does not plan to make to its defined contribution plan in the next 12 months?

  22. Other changes organizations have made or plan to make their defined contribution pension plan in the next 12 months. • We have amended our plan to allow increases or decreases in deferral percentage at any time. We have also amended our plan to allow participants to defer up to 100% of their salary. • Plans to make available Roth 401K • My organization plans to make changes to our TDA within the next year. • Adding additional fund choices to balance out investment options and added a "Step Up" plan which automatically increases employee contributions over a period of time (if employee chooses to participate) • Add Lifestyle funds • We have employer contribution DC plan (7%) plus 401k with employer match at 50% up to 6% employee contribution. Successfully implemented auto-enrollment of new employees last year. Decided not to auto-enroll others. • We are making changes but I won't know until December 2006. • As part of the PPA, we are considering deferring some of the participant fees onto the employees. • Increasing the match • Plan to review auto enrollment option for possible implementation. • maintain 403b as is with a flat dollar contribution based on years of service • Due to our ESOP, the employee contribution has been maxed to the Defined Contribution plan at 3%/year. As of 11/1/06, it was increased to a 6% maximum contribution. • We will be adding a Roth option to our 403(b) plan. • Our eligibility period will change from one year to two years of employment. • Reducing eligibility from 12 months service to 60 days service

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