Pension Contributions & Financial Performance

Our first white paper provides evidence of the correlation between corporate pension fund contribution and financial performance.

Key Findings:

  • Statistically significant correlations were found between contributions to defined contribution pension plans and corporate financial performance for Russell 3000 companies.

  • Employer contributions were found to be more correlated with financial performance than participant contributions, consistent with findings from a research paper by T. Rowe Price.

  • Companies with higher contributions per employee were found to be more likely to have higher revenue and EBITDA per employee, accounting for company size, age, and industry.

  • Above findings were found to hold for all industry sectors, except Professional, Scientific and Technical Services, which has little correlation between EBITDA and pension contributions per employee.