Defined Benefits

More and more public sector workers are relying on DC plans for their retirement savings, however, half of them in their 60s had less than $40,000 in their account balances, according to new research from EBRI.

The ERISA Industry Committee, which represents the largest employers in the U.S., is calling on Congress to re-examine the premiums paid by companies that sponsor DB plans after recent federal pension bailouts.

Once a leader in the shift away from defined benefit plans to defined contribution plans in the U.S. in the '80s and '90s, the tech giant is now taking a different approach by switching employees to a Retirement Benefit Account.

Pensions, in general, reduce poverty, and importantly, the anti-poverty impact of pensions is greatest for Black and Latino retirees, as well as for retirees without a college degree, says the National Institute on Retirement Security.

Private pension funds are not as fragile as state and municipal pensions because they have tighter regulatory rules that govern their accounting and contribution rate requirements, according to Equable Institute.

Despite nagging inflation, 401(k) plans saw record-highs in participation, deferral rates and the use of professionally managed allocations in 2022, according to Vanguard.