Private-Sector Pensions in 2019: Number of Plans, Participants, and Amount of Assets

Private-Sector Pensions in 2019: Number of Plans, Participants, and Amount of Assets

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December 27, 2021
Private-Sector Pensions in 2019: Number of Plans, Participants,
and Amount of Assets
Introduction
losses, and the contributions and earnings, if any, are used
A pension is a voluntary benefit offered by employers to
as a source of income in retirement. Examples of private-
assist employees in providing for their financial security in
sector DC plans include profit-sharing plans, money
retirement. Many employers in both the public sector
purchase plans, 401(k) and 403(b) plans, and Employee
(federal, state, and local governments) and in the private
Stock Ownership Plans (ESOPs).
sector (for-profit and nonprofit companies) offer pensions
for their employees. This product provides the following
Single-, Multiple-, and Multiemployer
data on private-sector pension plans: the number of plans,
Pension Plans
the number of participants in those plans, and the amount of
Pension plans can also be classified by whether they are
assets in the plans.
sponsored by one employer (single-employer pensions) or
more than one employer (multiple-employer or
Pension plans can be classified in several ways. This
multiemployer pensions).
product provides pension data based on two broad
categorizations of pension plans: (1) the benefit structure
Single-employer pension plans are sponsored by one
and (2) the number of employers that sponsor the pension
employer and cover eligible workers employed by the plan
plan.
sponsor. When an employee stops working for the
employer sponsoring the plan, the worker stops earning
Congress has expressed an interest in ensuring that
benefits under that plan.
American workers have financially secure retirements by
providing numerous tax advantages for, and regulatory
Multiple-employer pension plans are sponsored by more
oversight of, retirement plans. The policies that Congress
than one employer and are not maintained under collective
enacts have a role in shaping the types of retirement plans
bargaining agreements. They are treated as single-employer
that employers choose, or do not choose, to offer.
pension plans for the purposes of pension funding rules and
federal disclosure requirements.
Defined Benefit and Defined
Contribution Pension Plans
Multiemployer pension plans are sponsored by more than
A common way to categorize pension plans is by whether
one employer and, unlike multiple-employer plans, are
the benefits are based on a formula (called defined benefit
maintained under collective bargaining agreements. In
[DB] pensions) or are based on accumulated funds in an
some industries—for example, building trades—a worker
account (called defined contribution [DC] pensions).
who is a union member might work for a number of
employers over a career and would continue to earn pension
Defined Benefit (DB) Pension Plans. In DB plans
benefits, provided those employers were signatories to the
(sometimes referred to as traditional pension plans),
collective bargaining agreement.
participants receive benefits in retirement based on a
formula that typically uses either (1) a combination of the
Data on Pension Plans, Participants, and
worker’s length of service, an accrual rate, and the average
Assets
of a certain number of final years’ salary or (2) a flat-dollar
Table 1 provides information on the number of DB and DC
amount and the number of months or years the worker
plans in 2019 (the most recent year for which data are
participated in the plan. The benefit is usually paid as a
available), the number of active and retired participants by
monthly benefit in retirement for the life of the participant
plan type, and the dollar amount of assets in the plans.
and spouse, if married. Some DB plans allow a participant
Individuals are counted in each plan in which they
to take the benefit as a lump-sum dollar amount at
participate. Multiple-employer plans are included in the
retirement. Some DB plans are cash balance plans, which is
single-employer data. In 2019, fewer than 1% of the plans
a type of DB plan in which participants’ benefits are
(corresponding to 5.8% of participants) in the single- and
calculated using a formula but the benefit is expressed as an
multiple-employer data were in multiple-employer plans.
account balance that is paid as an annuity (or lump sum, if
offered by the plan).
Several points from Table 1 include:
Defined Contribution (DC) Pension Plans. In DC plans,
 Most plans (93.6%) in 2019 were DC
workers are provided individual accounts funded by their
plans, but a little over three-fourths of
own contributions, contributions from their employers, or
participants (75.9%) were in DC plans.
both. DC plans do not provide guaranteed income. The
One reason is because, upon separation
funds in the account experience investment gains and
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Private-Sector Pensions in 2019: Number of Plans, Participants, and Amount of Assets
from employment, many DC plan
 More than two-thirds (69.3%) of the
participants roll over their DC plan assets
assets in private-sector plans were in
to Individual Retirement Accounts
single-employer DC plans. In 2019,
(IRAs), while DB plan participants
single-employer DC plans held $7.2
typically remain in the plan.
trillion in assets.
 Most pension plans (99.7%)—covering

89.1% of participants—were single-
employer or multiple-employer plans.
Table 1. Single- and Multiple-Employer and Multiemployer Pension Plans in 2019
Single- and Multiple-Employer Pension
Plans
Multiemployer Pension Plans
Defined
Defined

Defined Benefit
Defined Benefit
Contribution
Contribution
Number of Plans
45,504
685,725
1,366
1,084
Number of Active
8.3
82.2
4.3
3.3
Participants (millions)
Number of Retired
7.8
1.2
3.3
0.1
Participants (millions)
Number of Other Retired or
Separated Participants with
6.0
21.3
3.0
1.0
Vested Right to Benefits
(millions)
Total Participants, Including
23.6
104.9
11.2
4.5
Beneficiaries (millions)
Plan Assets (billions)
$2,683.2
$7,244.1
$591.3
$188.5
Source: Department of Labor, Employee Benefits Security Administration, Private Pension Plan Bulletin Abstract of 2019 Form 5500 Annual
Reports, Tables A2, A5, and B1, at https://www.dol.gov/sites/dolgov/files/EBSA/researchers/statistics/retirement-bulletins/private-pension-plan-
bulletins-abstract-2019.pdf.
Notes: Multiple-employer plans are included in single-employer plan counts because they are treated as such under the Employee Retirement
Income Security Act of 1974 (P.L. 93-406). Active participants include any worker currently in employment covered by a plan and who is
earning or retaining credited service under a plan. This category includes any non-vested former employees who have not yet incurred a break
in service. Active participants also include individuals who are eligible to have their employers make payments to DC plans. Retired participants
are those receiving benefits. Other retired or separated participants with a vested right to benefits are individuals who are not currently
earning benefits in the plans (for example, they no longer work for the employer) but will receive benefits in the future. Total participant
counts include beneficiaries. Beneficiaries are spouses or other individuals receiving deceased participants’ benefits.
For Further Information:
CRS Report R43305, Multiemployer Defined Benefit (DB)
Pension Plans: A Primer
CRS Report R46366, Single-Employer Defined Benefit
Pension Plans: Funding Relief and Modifications to
Funding Rules
John J. Topoleski, Specialist in Income Security
Elizabeth A. Myers, Analyst in Income Security
IF12008

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Private-Sector Pensions in 2019: Number of Plans, Participants, and Amount of Assets

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