Wednesday, April 11, 2007
Here's the abstract:
The U.S. has undergone a major shift in recent years from defined benefit pension plans to defined contribution plans. The shift has important consequences for the most Americans because defined contributed plans, in granting decision-making authority to participants, will often fail to provide adequate retirement income to individuals with median earning capacity. The authors propose a number of legal changes to reduce some of the regulatory handicaps that have attended defined benefit plans and improve the reliability of defined contribution plans as principal source of retirement income.
This piece contains some much-needed, thoughtful recommendations on how to improve the current state of employer-provided pension plans. The full paper is here.