The decision to annuitize your defined benefit plan or opt for a lump-sum payment hinges on the rules of your specific plan, a new study found.

More people annuitize if their plan rules restrict the ability to choose a partial or lump-sum distribution, according to new research by the Employee Benefit Research Institute.

"Annuity and Lump-Sum Decisions in Defined Benefit Plans: The Role of Plan Rules" explored both types of plans from 2005 to 2010 and found that workers who had no plan restrictions on a lump-sum distribution had an annuitization rate of only 27.3 percent.

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 events
  • Access to other award-winning ALM websites including and

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