DB Pensions - Know the Facts

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Many would say the West Virginia teachers dodged a bullet. If they hadn't been permitted to revert to a Defined Benefit plan, many wouldn't have been able to afford to retire. Their options would have been to continue working long past their prime, or have taxpayers subsidize their retirement years. Somewhat ironic, given that it was to relieve stress on taxpayers that their pensions were switched in the first place. Of course they are the exception. Most others don't have the option of a do-over. – 16 –
AUSTRALIA One jurisdiction that has possibly the longest history with Defined Contribution pension plans is Australia. So it is worth looking at how it's going there, decades after that country abandoned Defined Benefit pensions. Here's the snapshot: • 50% of Australian seniors are living below the poverty line • 70% of Australian seniors claim some form of government assistance • 65% of Australian seniors have no money left in their DC plans by the time they reach 75 • the average Australian male has only $130,000 in his DC plan at retirement • the average Australian female has just $45,000 The Australian government's costs of providing social programs have gone up dramatically because of the switch to DC plans. – 17 –
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 16 and 17: WE SHOULD LEARN FROM HISTORY Winsto
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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