Key Findings:

• Current economic downturn and likely cut in stock dividends caused by the COVID-19 pandemic could lead to financial pressure on companies with under-funded defined-benefit plans.

• Approximately 27% of companies in the Russell 3000 still have a defined-benefit pension plan.

• Companies with a high target normal cost and a high concentration of active defined-benefit

• plan participants will have additional liability in the form of future company contributions.

• Companies in the air transportation and retail industries that are historically vulnerable to plan failures and low funding ratios have a more significant problem during the current market downurn with “at-risk” underfunded defined-benefit plans.

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