Thank you for sharing!

Your article was successfully shared with the contacts you provided.

woman with briefcase collaged with charts

Defined-benefit (DB) plans offer distinct advantages over defined-contribution (DC) 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.

Dig Deeper


Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk
Live Chat

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