Why Have Some States Introduced Defined Contribution Plans?

Alex Golub-SassAlicia H. MunnellGregory WilesKelly Haverstick Mauricio Soto

SLP#3

Introduction

Although defined benefit plans dominate the state and local sector, in the last decade twelve states have introduced some form of defined contribution plan.  The degree of compulsion varies among these states from mandatory participation in a defined contribution plan for new employees, to mandatory participation in both a defined benefit and defined contribution plan, to having the defined contribution plan only as an option…