New Center for Excellence Brief Asks Why Have Some States Introduced Defined Contribution Plans?

WASHINGTON, Jan. 18 /PRNewswire/ -- The Center for State and Local Government Excellence has issued a new issue brief that examines why, although most states and localities offer their employees defined benefit pension plans, in the last decade 12 states have introduced some form of defined contribution plan.

The brief was authored by a research team of the Center for Retirement Research at Boston College, headed by Alicia H. Munnell.

    The brief's key findings are:

    -- While twelve states have introduced some form of defined contribution
       plan, only four compel participation.

    -- A defined contribution option could help attract younger workers, but
       such plans cost more to operate and are unlikely to generate higher
       returns.

    -- The key factor for introducing a defined contribution plan is
       Republican control of the governorship and state legislature.

To download the full issue brief, visit http://www.slge.org/index.asp?Type=B_BASIC&SEC={6B5D32FD-C99D-41F7-9691- 4F1B1D11452B}&DE={E834288C-5E03-4A7F-AFB9-769663659277} (Due to the length of URL, please cut and paste into browser)

About the Center for State and Local Government Excellence

The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.