How to ‘DB-ize’ Your Supplemental DC Retirement Plan
Reduced revenues and growing demands for services have led governments to implement widespread pension reforms. Many of these changes will reduce employees’ pension income in retirement, and some employees with shorter tenures will no longer have access to the benefit. To offset these and other related impacts, many public employees will need to supplement their savings.
As a result, supplemental defined contribution plans will be more prominent in the public sector than ever before. This Government Finance Review article highlights a range of steps that state and local governments should consider as the role of these supplemental saving plans expands.