3 Points. New Report. States moves from defined benefit to defined contribution

The report: “Why Pensions Matter“

The group behind the report:  National Public Pension Coalition

 In the 1990s Viriginia & Michigan ceased defined benefit plans & this is what happened:

• MI & Va moved to 401K style plans
• State costs went up 
• Retirement security for state employees, teachers and lawenforcment “plummeted”
• In 2003, VA found that a defined benefit plan cost the state 1/2 the cost to administer
  • VA reopened the state pension & offered a voluntary 401K
  • 78% opted for the pension
• In Michigan costs have increased and funding levels have decreased leaving thr average social worker with $37,000 in a 401K and a monthly retirement annuity of $400

The Hill | Public pensions matter — just ask Michigan and West Virginia