PlanSponsor, August 14, 2008
The economic efficiencies inherent in a defined benefit retirement plan makes it a less costly benefit for employers to provide than a defined contribution retirement plan reports PlanSponsor.
So said Beth Almeida, Executive Director of the National Institute on Retirement Security (NIRS), as she concluded an overview of the findings in a new report, “A Better Bang for the Buck: The Economic Efficiencies of Defined Benefit Pension Plans,” during a conference call for the press.
Almeida and William (Flick) Fornia, Aon Consulting Senior Vice President, coauthored the report summarizing the findings of their analysis of the cost of achieving a target retirement benefit in a typical DB plan versus the cost of providing that same benefit under a 401(k)-style defined contribution plan. Read the full article here.