A Better Bang for the Buck

Mar. 4, 2010 admin
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The Economic Efficiencies of Defined Benefit Pension Plans

The National Institute on Retirement Security (NIRS) released a special report cautioning decision-makers to think twice before replacing traditional defined benefit (DB) pensions with 401(k)-type defined contribution (DC) retirement savings plans in an effort to save money.

To deliver the same level of retirement benefits, NIRS reports, “a DB plan can do the job at almost half the cost of a DC plan. Hence, DB plans should remain an integral part of retirement income security in an increasingly uncertain world because they offer employers and employees the best bang for the buck.”

To learn more, view NIRS findings: