Defined benefit (DB) and defined contribution (DC) plans have well-documented shortcomings in meeting the needs of employees and employers in the modern age. Yet, these plans continue to be standard, especially among public pensions. With an evolving workforce, it is time to build the next generation of retirement plans.
Beyond the growing pressures of crippling unfunded liabilities, DB plans suffer from a fatal flaw – they are unable to meet the portability needs of today’s highly mobile workforce. Only about one-third of plan participants will ever receive a meaningful benefit from a public DB plan.
Another significant shortcoming of DB retirement plans