By Dan Doonan
Since the Great Resignation in 2021 when employees across industries quit their jobs in large numbers, private sector employers have begun revisiting their benefit offerings to align with current employee preferences. As cited in a recent JP Morgan Asset Management report, “Pension Defrost: Is it Time to reopen DB pension plans- or at least stop closing and freezing them?,” 40 percent of private sector employees who separated from their employer during the Great Resignation cited inadequate benefit packages as a motivating factor in their decision. Additionally, 85 percent of younger workers said that receiving a fixed, lifetime, monthly benefit at retirement is a priority.
Corporate retirement plan sponsors reevaluating their benefit packages have a variety of retirement products available to them, including defined benefit pension plans. In fact, some companies may already have an existing “frozen” or closed pension plan on their balance sheet.