If it Ain’t Broke…
Is defined contribution really preferred by the
private sector and other states?
Most large private sector companies have a
defined benefit plan like ours
Among employers with 10,000+ employees use
of DB is increasing
SBC recently reinstituted its DB plan. Others are:
Chevron, Unocal. Lockheed Martin, Boeing,
Nebraska recently converted back to DB. DC
returns were 6-7%; DB plan returned 11%.
Kansas rejected DC saying, “conversion from the
current defined benefit plans…would not result in
lower employer contributions….”