Top 10 Advantages of Maintaining Defined Benefit Pension Plans

The National Conference on Public Employee Retirement Systems recently published a paper about the advantages of state/city employers maintaining a defined benefit pension plan.  The paper does an excellent job comparing the costs of a defined benefit (DB) pension plan vs a defined contribution (DC) plan.  An interesting topic that the paper reviews is how disability retirees will be paid a benefit from a DC plan: “Almost all state and local DB plans provide disability and survivor benefits, as well as retirement income.  Switching to a DC plan would require employers to obtain these benefits from another source, likely at a higher cost.”  Click here to read the paper.