Professors at the University of Illinois at Urbana-Champaign believe defined contribution retirement plans are the best approach to solving the retirement crisis in the United States.

Policy changes, product innovations and improved plan design decisions by plan sponsors have made today's DC plans a much better retirement system than they were even 10 years ago, the study found.

To improve and expand coverage and participation in defined contribution plans, the authors, Jeffrey Brown and Scott Weisbenner, recommend improving incentives for employers to offer plans and to make part-time and recently hired workers eligible to participate. They also recommend boosting contribution rates through automatic enrollment and automatic escalation, which can result in higher savings rates.

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.