NEW YORK — Dow Chemical Co. yesterday became the latest large company to move away from a traditional pension plan.

Starting in January, Dow will offer new salaried hires a so-called cash balance account. Dow will contribute 5 percent of their pay, plus interest, to the account, which will vest after three years.

The move is part of a broad shift away from traditional pension plans and toward retirement programs that shift risk from companies to workers.

Active participation in traditional defined-benefit pension plans, which guarantee workers a fixed amount of income in retirement, fell to 21 million in 2005 from 29 million people in 1985, according to a Government Accountability Office report issued earlier this year.

Meanwhile, active participation in defined contribution plans, such as 401(k) plans, rose to 55 million in 2005 from 33 million in 1985 as employers increased offerings of these plans, according to the GAO.

At Dow, vested workers will be able to cash out with a lump sum whenever they leave the company. Current employees will keep their traditional pensions, the company said.