DB Pensions - Know the Facts

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WE SHOULD LEARN FROM HISTORY Winston Churchill said “Those that fail to learn from history, are doomed to repeat it.” Let's not go down a road that others have regretted travelling. If we abandon Defined Benefit pensions in favour of a Defined Contribution scheme, we will be doing just that and may be doomed indeed. It is the history on this that suggests so. – 14 –
WEST VIRGINIA TEACHERS In 1991, the State of West Virginia ended its Defined Benefit plan for teachers, opting for a Defined Contribution plan instead. Here's what the DC plan did for the teachers of West Virginia. In 2006, 15 years into the plan their average pension account balance was less than $34,000, not nearly enough savings for retirement. This resulted in legal challenges that ended in 2008 with legislation that amounted to allowing the teachers a do-over, essentially erasing the 17 years of DC pensions, and replacing it with what they would have been entitled to under a DB plan, had the change not been made. – 15 –
Page 1: DEFINED BENEFIT PENSION PLAN KNOW T
Page 4 and 5: THE DIFFERENCE Defined Benefit pens
Page 6 and 7: THE MYTH THAT DEFINED CONTRIBUTION
Page 8 and 9: And here's another one: 2. DB plans
Page 10 and 11: The better solution is to provide a
Page 12 and 13: The Pension Research Council of the
Page 14 and 15: Here's some of what John Crooker, r
Page 18 and 19: Many would say the West Virginia te
Page 20 and 21: UNITED STATES The first generation
Page 22 and 23: CANADA That's the Australian and Am
Page 24 and 25: DO DEFINED BENEFIT PLANS NEED TO BE
Page 26: Because of these two factors, spons

DB Pensions - Know the Facts

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