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In some ways, it’s old news. Defined benefit plans in the private sector are disappearing. But the extent to which this shift has occurred in the last several years is stunning. According to Towers Watson, only 13 of this year’s Fortune 100 companies offered new employees a traditional defined benefit plan in 2011, compared to…
The brief’s key findings are: Previous studies find that the tax deferral advantage offered by 401(k) plans mainly benefits high-income workers, who face higher marginal tax rates. A key assumption is that employer 401(k) contributions do not affect workers’ total compensation – that is, they are fully offset by lower wages. However, our results suggest…
