Common wisdom might suggest otherwise, but a properly managed defined contribution plans can be as cost-effective as defined benefit pension plans, according to a study by the TIAA-CREF Institute.
Pension plan features, such as annuitized benefit payments and low-fee, professional asset management can be incorporated into the 401(k) and 403(b) plan models very easily. Many DC plans already include these features, including 401(a) and 403(b) plans sponsored by public and private colleges and universities, TIAA-CREF said.
DB plans do not hold any advantage over DC plans, according to its study.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
