Tag: DC plan
Introduction Over the past two decades, coverage under employer-sponsored pension plans has shifted from traditional defined benefit to 401(k)-type defined contribution formats. This shift has many important implications for retirement security. This brief examines the differential impact of the transition for men and women……
Abstract We use a general equilibrium life-cycle model with incomplete markets and heterogeneous agents to evaluate the macroeconomic and welfare implications of Defined Benefit (DB) versus Defined Contribution (DC) systems, and to investigate the effects of incremental reform within a particular system. Extensive calibrations illustrate the trade-off between effciency and redistribution that a tax-financed, DB…
