Tag: Defined Benefit

Shifting company contributions from 401(k)s to cash balance plan won’t help the rank and file. In the recent sudden burst of enthusiasm for defined benefit (DB) plans, IBM has been at the center of the conversation. Indeed, IBM is making changes to its retirement plans. Starting in January 2024, IBM will end its 5-percent matching…

Abstract As state and local policymakers enact benefit cuts to reduce the cost of their pension systems, the life-cycle model suggests that workers will adjust by saving more on their own. But, whether workers actually respond to pension characteristics remains an open question. After all, income received far in the future may not be salient…