For some large companies, a defined benefits plan is a cost-effective way to provide additional rewards to some of their most valuable workers while allowing the employer to retire employees in an orderly manner, according to a new paper released by Towers Watson.

In its "Perspective" paper, Towers Watson outlined how various employees would fare based on participation in a DB plan versus a defined contribution plan and assessed whether the workforce planning advantage of DB plans justify the cost and risk of plan sponsorships.

Towers Watson used its proprietary FiT Age model to compare the benefits provided by DB and DC plans that have similar long-term average costs.

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.