IDEAS home Printed from
   My bibliography  Save this article

An Empirical Analysis of the Motives for Fully Funded Defined Benefit Plan Terminations


  • Cassandra R. Cole
  • David W. Sommer


Statistics gathered by the Pension Benefit Guaranty Corporation indicate that an average of 7,000 defined benefit plans were terminated per year between 1988 and 1997. Prior studies exploring motives for defined benefit pension plan terminations have focused exclusively on overfunded plans. This article expands upon the previous termination literature by examining motives for termination of fully funded defined benefit plans. The results indicate that fully funded terminations are partially driven by the firm’s ability to access capital. The results also suggest that motives for termination vary depending on the size of the firm.

Suggested Citation

  • Cassandra R. Cole & David W. Sommer, 2005. "An Empirical Analysis of the Motives for Fully Funded Defined Benefit Plan Terminations," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 28(1), pages 33-60.
  • Handle: RePEc:wri:journl:v:28:y:2005:i:1:p:33-60

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:28:y:2005:i:1:p:33-60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.