Thank you for sharing!

Your article was successfully shared with the contacts you provided.
woman with briefcase collaged with charts (Photo: Sergey Nivens/Adobe Stock

Defined benefit plans offer distinct advantages over defined contribution plans, and employers should carefully examine any claims that dispute that, according to new research from the National Institute on Retirement Security.

“This study finds that due to the effects of longevity risk pooling, maintenance of portfolio diversification, and greater investment returns over the lifecycle, a DB plan can provide the same level of retirement benefits at about 27 percent lower cost than an ideal DC plan and about 49 percent lower cost than an individually directed DC plan,” William B. Fornia, president of Pension Trustee Advisors and Dan Doonan, the executive director of the National Institute on Retirement Security, wrote in a research paper.



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.