Experience in Other States
Florida: DC alternative established in 2002. State contributes 9% of salary. 5% of existing employees transferred; 19% of new employees. Mgmt cost for DC plan: 1.7%.
Michigan: Since March 1997, new employees have DC (only) plan. 40% of assets are in plan’s default money market fund.
Nebraska: After 20 years of DC plan, state converted back to DB. DC returns were 6-7%; DB plan returned 11%.