Monday, March 16, 2015
Will Switching Government Workers to Account-type Plans Save Taxpayers Money?
However, since these plans are typically introduced alongside cuts to benefits workers have already accrued, this point is often lost on elected officials and the general public. Since cost savings have strong appeal at a time of budget austerity and cash balance plans are the hot topic in pension debates, this report will focus primarily on cash balance plans’ impact on employers and taxpayers. However, it will also consider claims that cash balance and other account-type plans improve workers’ retirement security.
Overview: Defined-benefit, defined-contribution, and hybrid plans