This paper examines whether sponsors of traditional defined benefit (DB) plans are replacing them with 401(k) or other defined contribution (DC) plans. I compare pension plan offerings by sponsors of a DB plan in 1985 with their offerings in 1992 using Form 5500 filings. I find that 401(k) and other DC plans are substituting for terminated DB plans and that offering a DC plan of any type increases the probability of a DB termination. Thus, it appears that, at the sponsor level, many of the new 401(k) plans are not avenues for net saving but are replacements for the more traditional pension forms.

Leslie E. Papke is an associate professor of Economics at Michigan State University. She thanks Bill Even, Bill Gale, Doug Kruse, John Turner, and two anonymous referees for helpful comments. The data used in this article can he obtained beginning September 1999 through August 2002 from Leslie E. Papke, Department of Economics, 101 Marshall Hall, Michigan State University, East Lansing, MI 48824.