Why Have Some States Introduced Defined Contribution Plans?
January 2008
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...
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Alicia H. Munnell is the Peter F. Drucker Professor of Management Sciences in Boston College’s Carroll School of Management and Director of the Center for Retirement Research at Boston College (CRR). Alex Golub-Sass is a research associate at the CRR. Kelly Haverstick is a research economist at the CRR. Mauricio Soto is a senior research associate at the CRR. Greg Wiles is a former research assistant of the CRR. The authors would like to thank Elizabeth Hill and Daniel Kohler for helpful comments.