Tag: defined contribution
Abstract This paper estimates the short-run impact of the Pension Protection Act of 2006 (PPA2006) on holdings of employer stock in defined contribution pension plans. PPA2006 allowed participants in plans with employer stock to diversify their holdings. However, stand-alone ESOPs, i.e., those that do not allow employee elective deferrals or after-tax contributions, were exempt from…
The brief’s key findings are: In recent years, several states have shifted from defined benefit (DB) to defined contribution (DC) pension plans. Many of the new plans are “hybrids” with a slimmed down DB plan and a minimal DC plan, which shifts substantial risk to employees. A better hybrid design could offer a full DB…
