2/17/2005
15
Comparisons
(CalPERS Data)
Administrative costs of defined contribution plans are typically 2% of assets

Only 50 cents of each $1 in a defined contribution plan is paid out in benefits.


Administrative costs with CalPERS, the nation’s largest defined benefit plan, 0.18% of assets

80 cents of each $1 in a defined benefit plan is paid out in benefits
To achieve the same benefit payments, contributions to defined contribution plans would have to increase substantially,
National Conference on Public Employee Retirement Systems, Washington