The Total View - (Page 44) Promoting the DB plan to employees In addition to the total retirement statement participants received, many organizations also utilized these resources to help communicate the value of the DB plan to employees (according to Hewitt Associates3): Regular written communications Online communications or website, and Employee education meetings. 8.1% Terminate 3.4% Convert Fast Fact DB plan sponsors cited cost (volatility and amount) as the top reasons for closing participation, freezing accruals, or terminating plans.4 20.3% Freeze 39.2% Maintain 29.0% More Information 1 SPARK 2007 Marketplace Update Maintain Plan More Information Freeze Plan Terminate Plan Convert Plan 2 PLANSPONSOR 2006 DB Survey - Too Little, Too Late 3 Hewitt: Hot Topics in Retirement 2006 2007 Principal Financial Group Survey 4 In an online study regarding the impact of PPA (conducted by the Principal Financial Group with a sample of our retirement plan sponsors), 39% of DB plan sponsors indicated they will maintain their plan, 29% indicated they needed more information before taking any actions, 20% were likely to freeze their plan, while 8% will terminate their plan, and 3% planned to convert their DB plan into a cash balance plan. 4 44
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