If you've written off defined benefit (DB) pension plans as relics of a bygone era, the numbers tell a different story—one that could reshape your retirement benefits strategy.
While fewer employers sponsor defined benefits (DB) plans today than in the 1980s, the plans that remain are thriving. Assets under management have surged from $400 billion in 1980 to $3.5 trillion in 2020. More striking: aggregate funded status hit 104 percent in 2024, marking three consecutive years of full funding for the first time in over two decades. Some organizations see funded levels of 125 percent or higher. This isn't a dying industry managing decline—it's a maturing market with renewed strategic relevance.
Three converging trends are putting DB plans back on the radar, and Ani Chatmajian, Defined Benefit Solution Leader at TELUS Health, emphasizes why these shifts matter for plan sponsors:
Overfunding creates new strategic options. When your DB plan's assets exceed obligations by 20 percent or more, you're no longer just managing legacy commitments. You can reopen frozen plans to new participants, enhance benefits more cost-effectively than modifying DC plans, or strategically de-risk toward eventual plan termination. Recent economic conditions have created this opportunity for many plan sponsors who thought their DB strategy was set in stone.
Defined contribution (DC) contribution limits are creating coverage gaps for high earners. Current IRS limits make it challenging for executives and highly compensated employees to accumulate adequate retirement savings through 401(k) plans alone. Because DB plans have separate contribution limits, some organizations are launching new DB plans specifically to supplement existing DC programs. Airlines have pioneered this approach for pilots, and other industries are taking notice.
Hybrid designs are bridging traditional and modern approaches. Market-based cash balance plans—which combine DB plan security with DC-style portability—have become more attractive thanks to SECURE 2.0 legislation. Half of CFOs surveyed in 2025 intend to maintain DB plans long-term, up from just 36 percent in 2023. While only a minority are actively reopening frozen plans, 58 percent say they're open to considering it.
At TELUS Health, leaders like Ani Chatmajian—who brings 35 years of DB outsourcing experience—work closely with clients through systems development, implementation, and ongoing operational success. Ani combines her knowledge of DB plans and technology to offer the best tools to her clients. She strategically supports sales and product development, scoping projects and positioning holistic solutions for clients. Her years of experience span several organizations. Before joining TELUS Health, she served as DB Solution Leader at Mercer, Implementation Vice President at Fidelity Investments, Strategic Business Unit Director at ACS (now Conduent), Director/Program Manager at Mellon Financial Corporation and Partner at PricewaterhouseCoopers.
We partner with you to navigate complexity with confidence—bringing the right technology, deep expertise, and scalable service to every stage of your DB strategy. Read Part II of this story here.