DB Pensions - Know the Facts
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THE MYTH<br />
THAT DEFINED<br />
CONTRIBUTION PLANS<br />
ARE CHEAPER<br />
Often when a switch from Defined Benefit to<br />
Defined Contribution is made, employers will<br />
use <strong>the</strong> change as an opportunity to reduce<br />
<strong>the</strong> amount <strong>the</strong>y contribute. Of course this<br />
saves <strong>the</strong> employer money, but it isn't because<br />
DC plans are cheaper, it's because <strong>the</strong><br />
employer is reducing <strong>the</strong> employee's benefits.<br />
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