The Evolving Role of Defined Contribution Plans in the Public Sector
The role of defined contribution plans for state and local government employees is evolving. Due to a range of factors, traditional defined benefit plans are under pressure to make structural changes as governments seek to reduce or control employer contributions and address unfunded liabilities.
Defined contribution plans have played a useful role as supplemental saving vehicles, but, with some exceptions, have generally not focused on becoming the primary income replacement resource. This report explores several central questions about public sector retirement plans, focusing on the increasing role of defined contribution plans in the public sector.