A new research brief examines the workforce impacts of existing defined benefit pension plans to assess the likely effects of a switch to defined contribution individual accounts or cash balance plans.

The National Institute on Retirement Security's "The Great Recession: Pressures on Public Pensions, Employment Relations and Reforms" found that public employers would attract a different labor force if they switched retirement benefits away from pensions because public employees would be less committed to their employers and thus less likely to invest in nontransferable skills that are critical to delivery of taxpayer services.

Not having a steady pension plan would also increase employee turnover, the report found. DC accounts and cash balance plans no longer defer compensation into the future and thus offer fewer economic incentives to employees to stay with public employers.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.