Tag: defined contribution

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  7 years ago

  Converting from Defined Benefit to Defined Contribution: The “Free” Money Pays Down Unfunded Liabilities and Pays Dividends to Taxpayers

  Implementing a DC system delivers immediate payroll savings for the new plan’s participants. Using these savings to shore up the unfunded liabilities from the preexisting DB plans will ensure that past promises made are kept. At the same time, the new DC plan participants rest assured that each and every paycheck, funds are being deposited into an account belonging to them. Taxpayers win as the escalation in retirement overhead costs level off and eventually realize the full benefit of the savings.

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  7 years ago

  ALEC Applauds Michigan’s MPSPERS Pension Reform Efforts

  This reform package preserves retirement security for existing and future employees while putting in place a more fiscally sustainable benefit for new workers. Both teachers and taxpayers win.