CHART: THE PENSION FREEZE

Major companies that have moved away from defined benefit pension plans.

Aon Corp.

Froze its pension plan to all new employees starting in 2004 and offered a new defined contribution plan tied to an employee's length of service.

General Motors Corp.

Starting in 2007, cash balance plans covering salaried employees hired since 2001 will be replaced with a beefed-up 401(k) plan. Employees hired before 2001 will have their pensions based on a career-average pay rather than final-accrual pay.

Hewlett-Packard Co.

In 2006, it grandfathered older employees whose age and service equals at least 62; froze pension plan for younger workers and offered an enhanced 401(k) plan.

IBM Corp.

In 1999, IBM replaced its prior pension plan with a cash balance plan. Later, IBM closed the plan to employees hired on or after Jan. 1, 2005, offering new employees an enhanced 401(k) plan. In the latest change, IBM will completely freeze its defined benefit plan in 2008, with all employees earning future retirement benefits through an enhanced 401(k) plan.

Lockheed Martin Corp.

In 2006, kept existing employees in its defined benefit plan but offered an enhanced 401(k) plan to new employees.

Motorola Inc.

Froze its defined benefit plan to all new employees starting in 2005 and offered a beefed-up defined contribution plan.

NCR Corp.

In 2004, froze its pension plan for new and younger employees and offered an enhanced 401(k) plan. In 2007, older employees will no longer accrue benefits under their traditional pension plans and will instead be offered an enhanced 401(k) plan.#

Sears Roebuck & Co.

Froze its pension plan in 2005 to new employees and those under the age of 40 and offered enhanced 401(k) plan. In 2006, phased out its pension plan entirely for older employees, offering them a revamped 401(k) instead.

Sprint Nextel Corp.

Effective Jan. 1, 2006, froze its pension plan and enhanced its 401(k) plan. The change affects Sprint Co. employees who joined the company before its merger with Nextel Communications Corp.

Verizon Communications Inc.

Effective July 1, 2006, froze its pension plan for all management employees. Future benefits to be provided through an enhanced 401(k) plan.