May 27, 2003
Traditionally, annuities have been the main method of distributing retirement income, especially in defined benefit plans. In recent years, the growth of cash-balance versions of defined benefit plans and of defined contribution plans has made lump-sum payments a more prominent distribution method.
In 2000, 20.6 million workers participated in defined benefits retirement plans. Such plans must make an annuity option available to retirees. Traditional pension plans sometimes offer one form of lump-sum payment or another and 35 percent of workers participate in traditional plans with such an option.
Workers in cash balance plans, another style of defined benefit package, are about twice as likely to be participating in a plan that offers a lump-sum option: 71 percent of workers in cash balance plans have a lump-sum option.
Under defined contribution plans, the employee is likely to be offered more than one payment option at retirement. Lump-sum payouts are offered to almost all defined contribution plan participants.
These data are from the National Compensation Survey. For more information about how retirement plans distribute benefits, see Allan P. Blostin, "Distribution of retirement benefits," Monthly Labor Review, April 2003.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Lump-sum retirement on the Internet at http://www.bls.gov/opub/ted/2003/may/wk4/art01.htm (visited December 21, 2014).
Three recent editions of Spotlight on Statistics
Housing: before, during, and after the Great Recession
looks at consumer expenditures on household items, employment in residential construction, prices for household items, and injuries in occupations involved in building and maintaining our homes.
Women veterans in the labor force examines the demographic, employment, and unemployment characteristics of women veterans.
BLS Statistics by Occupation provides an overview of occupational employment and wages with an emphasis on STEM jobs and occupational data by typical entry-level education required.