|Decisions, Decisions: Retirement Plan Choices for Public Employees and Employers|
A new research analysis finds that defined benefit (DB) pension plans are strongly preferred over 401(k)-type defined contribution (DC) individual accounts.
Download the report here. Read the Press Release here. Download the PowerPoint here. Download a Fact Sheet here. Download a FAQ here. Read a blog post about Decisions, Decisions from co-author Mark Olleman here.
The study analyzes seven state retirement systems that offer a choice between DB and DC plans to find that the DB uptake rate ranges from 98 to 75 percent. The percentage of new employees choosing DC plans ranges from 2 to 25 percent for the plans studied.
In recent years, a few states have offered public employees a choice between primary DB and DC plans. The new study, Decisions, Decisions: Retirement Plan Choices for Public Employees and Employers, analyzes the choices made by employees and finds that:
The seven plans offering DB and DC choice that were analyzed for the study include Colorado Public Employees’ Retirement Association, Florida Retirement System, Montana Public Employee Retirement Administration, North Dakota Public Employees Retirement System, Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, and South Carolina Retirement Systems.
Download full report here.