We’ve Reached Our Final Destination in the “Road to a COLA” for 2022! Read the message below from the Teachers’ Retirement System of Louisiana (TRSL) regarding the payment for eligible retirees
June 24, 2022
2022 Final Legislative Update
June 30, 2022

A Better Bang for the Buck 3.0

Research has shown that Defined Benefit (DB) plans, or pensions, are cost-effective retirement plans that provide stable benefits. The National Institute on Retirement Security, for example, released a six-state study showing teachers and public employees were better off with a pension plan. You can view our summary of the study here or read the full study here

Yet, some still argue that closing current pension plans and implementing Defined Contribution (DC) plans, or 401(k) style plans, is cheaper. An analysis from the National Institute on Retirement Security (NIRS) finds that DB pension plans offer substantial cost advantages over 401(k)-style accounts. A DB pension plan can cost 27 percent less than an “ideal” DC plan, with below-average fees and no individual investor deficiencies.

Click here to read the full report on how DB plans are more cost effective versus DC plans.