Tag: Private Defined Benefit Plans
The brief’s key findings are: Defined benefit pension plans – unlike 401(k)s – shelter individuals against financial turmoil. But falling asset values may require employers to boost contributions by perhaps $90 billion in 2009. And higher contributions amid a slowing economy could trigger some layoffs, bankruptcies, or plan freezes – reducing retirement income for affected…
Abstract Defined benefit plans in the private sector are on the decline. And the early 21st century produced an uptick in the pace of decline driven by the financially devastating impact of the ‘perfect storm’ of plummeting stock prices and low interest rates, legislation that will require underfunded plans to increase their contributions, and accounting…