DB Pensions - Know the Facts

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THE DIFFERENCE Defined Benefit pensions guarantee retirees a fixed amount of pension payments for life. They will not outlive their pensions. Defined Contribution pensions are really just RRSPs, and as such, their value goes up and down with the markets. There is no guarantee they will provide enough to retire on, and in a great many cases, they don't. – 2 –
THE FACTS There is a considerable body of research comparing Defined Benefit and Defined Contribution pension plans, and the overwhelming conclusion is that Defined Benefit plans are best for employees, employers, and taxpayers in general. Part of the reason is because they are cheaper. The research, including extensive financial modeling by the National Institute on Retirement Security, shows that a Defined Benefit plan can provide the same level of retirement benefits as a Defined Contribution plan at about half the cost. (46% lower) 46% – 3 –
Page 1: DEFINED BENEFIT PENSION PLAN KNOW T
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 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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