The National Institute on Retirement Security (NIRS) released a report that updates prior case studies in Alaska, Michigan and West Virginia and provides a new study on Kentucky. These are states that switched from Defined Benefit (DB) plans to Defined Contribution plans (DC). NIRS researchers found that switching from a DB to a DC plan increased costs for these states rather than address the existing pension underfunding.
The report also evaluates some of the workforce challenges that emerged as a result of the switch. To read the full report, click here.
Rodney R. Watson
LRTA Executive Director