For their part, businesses have often viewed defined-benefit pension plans, in effect, as business-sector profit centers because capital gains affect corporate defined-benefit pension contributions and, hence, earnings. This consideration is relevant in the measurement and interpretation of the personal saving rate.
In recent years, contributions to private defined-benefit plans have declined significantly as an increasing part of these plans’ accrued benefit liabilities have been met through a rise in the market value of their equity holdings. Offsetting this decline, to some extent, has been an increase in dividend and other capital income.