US Companies Revive Pension Plans as Market Conditions Ease Funding Pressures

US companies are reviving pension plans as market conditions ease funding pressures. Rising share prices and bond yields have made it easier for employers to cover future pension obligations, with many plans holding assets that exceed their liabilities.

The Employee Benefit Research Institute reports that fewer than 10 percent of private-sector workers in the US were enrolled in a defined-benefit pension plan in 2024, down from roughly 30 percent in 1988. Public-sector workers remain more likely to have pension coverage.

Companies like IBM, JBS Foods, and Northwell Health are reintroducing or launching new pension plans, often as a bargaining chip in wage and benefits negotiations with unions or to attract and retain workers. Unlike defined-contribution plans like 401(k)s, corporate pensions provide a fixed income for life after retirement.

Matthew Cronin, 27, recently became eligible for pension benefits through PECO and expects the pension to fill any gap left by potential future cuts to Social Security. 'Having a pension is a huge motivator to stay with the company,' he said.