DB Plans – CORPaTH

What’s Old is New Again: The Potential Benefits of Reopening Your Defined Benefit Plan

By Jonathan Perry Source: Georgetown University Once a key employee benefit, corporate defined benefit (DB) plans have been on the decline over the past several decades. The U.S. has seen a dramatic transition from DB to defined contribution (DC) plans. Over this time, active DB participation has declined from 26 million to 12 million, while active DC membership has grown from 36 million to 85 million. Today, only 15% of private sector workers have access to a DB plan [...]

CORPaTH2026-05-19T12:23:45-07:00May 19th, 2026|Categories: Defined Benefit Plans|Tags: DB Plans|

Statement on Efforts in Alaska to Restore Pension Benefits to Address Grave Workforce Shortage

Source: National Institute on Retirement Security In response to the veto of bipartisan legislation passed by the Alaska legislature to provide defined benefit pensions to Alaska’s public employees, the National Institute on Retirement Security (NIRS) issued the following statement today from Dan Doonan, NIRS executive director: “Alaska’s effort to restore a pension plan for public workers represents meaningful progress in addressing one of the state’s most pressing challenges: attracting and retaining a stable, experienced public workforce. While Governor Dunleavy [...]

CORPaTH2026-05-27T10:39:05-07:00May 19th, 2026|Categories: Pension Funding|Tags: alaska, DB Plans|

How Pensions Power the Economy

By Tim Walker Source: NEA Today Retired special education teacher KC Walsh started thinking about her pension a few years into her teaching career. “I might have been one of the few who did,” recalls Walsh, who lives in Oak Grove, Calif. “Teaching is an extremely hard job. You have other things on your mind, especially when you are young. But knowing that there was some security at the end my career helped keep me in the profession.” Walsh [...]

CORPaTH2026-04-09T08:44:14-07:00March 20th, 2026|Categories: Economy|Tags: DB Plans, economy|

A strong Alaska requires a strong public workforce aided by a defined benefits plan

By Bronson Fyre Source: Anchorage Daily News Alaska has always depended on people who are willing to commit their lives to this place — to raise families here, build communities here and serve the public good. But today, too many of the institutions that make Alaska work are struggling to hold onto the people who keep them running. Our schools are losing teachers faster than they can replace them. Police and fire departments are struggling to fill positions. Across [...]

CORPaTH2026-03-18T08:58:11-07:00March 14th, 2026|Categories: Defined Benefit Plans, Economy|Tags: alaska, DB Plans|

Groundbreaking Nationwide Pension Plan for JBS Meat and Poultry Workers to be Honored at CORPaTH Crystal Globe Awards and Summit

Randi Weingarten, president of 1.8-million-member American Federation of Teachers, among scheduled honorees during December 17 event in Las Vegas A groundbreaking nationwide pension plan for meat and poultry workers will be recognized during CORPaTH’s Crystal Globe Awards and Summit, Dec. 17, 2025, at Caesars Palace Las Vegas. The plan, built from scratch to benefit tens of thousands of employees of JBS Foods USA heralds a revival of defined-benefit pensions and the peace of mind they provide for Americans who [...]

CORPaTH2025-12-03T09:23:25-08:00December 14th, 2025|Categories: Defined Benefit Plans|Tags: DB Plans, jbs, ufcw|

Public Plans Are a Huge Revenue Source. So Why Are They Still Under the Axe?

By James Comtois Source: Institutional Investor State and local lawmakers have been looking to make cuts to public pension plans to reduce costs. But new research shows that these potential short-term savings could come at a steep long-term cost. The National Conference on Public Employee Retirement Systems (NCPERS) has found that defined benefit pension plans generate far more in state and local tax revenue than they cost taxpayers. In 2023 alone, pensions generated nearly $662 billion in tax revenues [...]

CORPaTH2025-07-16T11:17:15-07:00July 15th, 2025|Categories: Defined Benefit Plans|Tags: DB Plans, economy, revenue|

Are defined benefit plans back? Half of CFOs are now using them

By Adam Zaki Source: CFO.com After years of closing, freezing or offloading defined benefit pension plans, a growing number of finance leaders are rethinking their strategy, according to Mercer’s 2025 CFO survey. Data shows half of plan sponsors now say they intend to keep their DB plans for the long term, a sharp reversal from just two years ago, when just 36% of finance leaders said DB plans were sticking around. Phenomena like higher funded status, new plan design [...]

CORPaTH2025-06-13T08:09:11-07:00June 12th, 2025|Categories: Defined Benefit Plans|Tags: CFO, DB Plans|

A Major Step Forward: Alaska’s House Passes HB 78

By Ariel McConnell Source: National Public Pension Coalition After nearly two decades without a defined benefit pension system for public employees, Alaska is one step closer to reversing course. On May 12, 2025, the Alaska House of Representatives passed House Bill 78 —a historic move toward restoring secure retirement benefits for public servants across the state. The final vote was 21-19. The bill has now been transmitted to the Senate. This victory follows months of growing momentum, public support, [...]

CORPaTH2025-05-14T09:56:07-07:00May 14th, 2025|Categories: Defined Benefit Plans|Tags: alaska, DB Plans|

DB funding improvements ease financial burden for sponsoring employers

By Sophie Smith Source: Pensions Age Defined benefit (DB) pension schemes are no longer acting as a "drain" on sponsoring employers, Broadstone has said, after its analysis found that deficit reduction contributions dropped to £932m in Q3 2024 as funding improvements eased financial pressures. Broadstone highlighted data from the Office for National Statistics (ONS), which showed that £932m of private sector and hybrid DB pension scheme deficit reduction contributions were made in Q3 2024. The firm noted that whilst [...]

CORPaTH2025-04-22T13:24:10-07:00April 22nd, 2025|Categories: Pension Funding|Tags: DB Plans, Office for National Statistics, uk|

Defined Benefit Pension Spending Helps Local and National Economies

Source: NYSTRS Retiree spending of defined benefit (DB) pension benefits generated $1.5 trillion in total economic output, supported 7.1 million jobs across the country, and produced $224.3 billion in tax revenue in 2022, according to “Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures,” a new study from the National Institute on Retirement Security (NIRS). Pension spending “supports the economy and supports jobs where retirees reside and spend their benefits,” write the study’s authors, NIRS Executive Director [...]

CORPaTH2025-02-06T12:24:36-08:00February 5th, 2025|Categories: Economy|Tags: DB Plans, nirs, pension spending|

Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures

Source: National Institute on Retirement Security Pensionomics 2025: Measuring the Economic Impact of Defined Benefit Pension Expenditures finds pension spending powered by U.S. private and public sector defined benefit pensions contributed significantly to the economy. In 2022, retiree spending of public and private sector pension benefits generated $1.5 trillion in total economic output, supporting 7.1 million jobs across the nation. In addition to its impact on employment and economic activity, pension spending bolstered public finances in 2022, adding $224.3 [...]

CORPaTH2025-01-13T15:11:54-08:00January 13th, 2025|Categories: Economy|Tags: DB Plans, nirs, Pensionomics 2025|

UK: Investors call for reform of defined benefit pension plans

Source: Agenzia Nova Investors are calling on the UK government to reform the £1.200 trillion so-called defined benefit pension schemes to free up billions for infrastructure and real estate, the Financial Times reported. “The schemes need to be a priority: they have the potential to make money available more quickly than other sectors,” said Insight Investment’s head of solutions engineering, Jos Vermeulen. Second Owen McCrossan, head of investment for abrdn's pension funds, a 5 per cent allocation of assets [...]

CORPaTH2025-01-21T11:39:47-08:00December 24th, 2024|Categories: Defined Benefit Plans|Tags: DB Plans, Pension Reform, UK government|

The Benefits of Choosing a Job With a Pension Plan vs. 401(k) Contributions

By Deanna Ritchie Source: Microsoft Start Data from the Bureau of Labor Statistics indicate that just 15% of private industry employees have access to a pension, also known as a defined benefit plan. Employers began moving away from these plans in the late 1970s when the 1978 Revenue Act began allowing employees greater control over their retirement savings by using pre-tax dollars for 401(k) contributions. Some employers saw this as a potential opportunity to reduce risk and long-term financial [...]

CORPaTH2024-10-24T16:37:19-07:00October 24th, 2024|Categories: Retirement|Tags: 401(k), Bureau of Labor Statistics, DB Plans|

Retirement 101: Defined benefit vs. defined contribution plans

By Miranda Marquit Source: Britannica Money When researching retirement account choices, you might come across the terms defined benefit plan and defined contribution plan. What’s the difference between the two, and do you get to pick and choose? (Typically, no.) How might your structure—defined benefit versus defined contribution—impact your retirement savings strategy? Read the full article

CORPaTH2024-07-19T13:55:45-07:00July 19th, 2024|Categories: Defined Benefit Plans|Tags: DB Plans, DC Plans|

A good time for pensions: Why the time is ripe for a secure future

Source: National Public Pension Coalition In the years following the Great Recession of 2007-2009, billionaire-backed opponents of defined-benefit pensions presented a reasonably straightforward case. The financial crisis sent equities tumbling, funding ratios of pension plans cratered, and it was easy for opponents of public employees to spread doom and gloom about pension plans. To make matters worse, pension opponents often deliberately sowed envy among non-pension recipients. At the NPPC, we believe everyone deserves a stable retirement. It’s a false [...]

CORPaTH2024-02-29T16:20:43-08:00February 29th, 2024|Categories: Defined Benefit Plans|Tags: DB Plans, retirement|

Americans want pension plans, worry about retirement security – NIRS

By Rob Kozlowski Source: Pensions & Investments National anxiety about retirement security continues to grow, and the vast majority of Americas believe all workers should have a pension plan, according to a new report from the National Institute for Retirement Security. According to the report, 79% of respondents to a national public opinion poll of working-age Americans believe that the nation faces a retirement crisis, up from 67% that expressed that sentiment in 2020, the last time NIRS conducted [...]

CORPaTH2024-02-27T15:07:05-08:00February 27th, 2024|Categories: Retirement|Tags: DB Plans, Retirement Security|

Faced with recruiting crisis, Alaska mulls reopening of 2 pension plans

By Rob Kozlowski Source: Pensions & Investments Nearly two decades after the Alaska Legislature closed the state's two defined benefit plans for public employees and teachers, the state is closer than ever to reopening those plans as it faces a recruitment and retention crisis for general employees, teachers and public safety officials. While the bill has passed the Alaska Senate, expectations are muted regarding its chances in the conservative-controlled House of Representatives due to concerns about costs, although an [...]

CORPaTH2024-02-14T10:02:21-08:00February 14th, 2024|Categories: Pension Funding|Tags: alaska, DB Plans|

IBM to end 401(k) match, offer a ‘hybrid pension’: Will other employers follow suit?

By Kristen Beckman Source: Benefits Pro IBM, once a leader in the shift away from defined benefit plans to defined contribution plans in the United States beginning in 1984, is now heading in a new direction with its retirement savings benefit for employees. Many industry observers wonder if other employers will follow IBM’s lead again. IBM notified employees earlier this month that it will suspend its 401(k) match and 1% automatic contribution as of Jan. 1 and will instead [...]

CORPaTH2023-12-15T10:56:33-08:00November 21st, 2023|Categories: Pension Funding|Tags: 401(k), DB Plans, hybrid pension, IBM|

NIRS to hold webinar on Alaska’s experience moving public employees from pensions to defined contribution plans

Source: National Institute on Retirement Security Please join us for a webinar on Monday, June 12, 2023, at 2:00 PM ET, Alaska's Experience Moving Public Employees from Pensions to Defined Contribution Plans. Click here to register. In 2005, Alaska closed its two statewide defined benefit pension plans for teachers and public employees. Since July 1, 2006, all new Alaska hires participate in a defined contribution plan rather than a pension plan. The retirement plan change has had the unintended [...]

CORPaTH2023-06-07T13:00:40-07:00June 7th, 2023|Categories: Retirement|Tags: alaska, DB Plans, DC Plans|

JP Morgan Analysis Says Corporate Defined Benefit Pension Plans Deserve A Fresh Look

By Dan Doonan Source: Forbes Since the Great Resignation in 2021 when employees across industries quit their jobs in large numbers, private sector employers have begun revisiting their benefit offerings to align with current employee preferences. As cited in a recent JP Morgan Asset Management report, “Pension Defrost: Is it Time to reopen DB pension plans- or at least stop closing and freezing them?,” 40 percent of private sector employees who separated from their employer during the Great Resignation [...]

CORPaTH2023-05-24T15:19:37-07:00April 24th, 2023|Categories: Defined Benefit Plans|Tags: DB Plans, jp morgan|

Pensions & Retirement Security

Source: National Education Association All educators deserve the ability to retire with financial security. Pensions provide educators with a guaranteed, reliable source of income in retirement. They are also a tool to attract and retain qualified, experienced educators to the profession. Schools and students succeed when talented young people in search of a challenging career are recruited into the profession, and stay in it for the long term. Pensions help do that. Pensions provide excellent retirement security. A traditional pension [...]

CORPaTH2022-06-29T16:18:32-07:00June 29th, 2022|Categories: Retirement|Tags: DB Plans, public educators|

City of San Diego Will Retroactively Replace Thousands of Employees’ DC Plans With Pensions

By Anna Gordon Source: AI-CIO.com The city of San Diego will be offering retroactive defined benefit (DB) pension plans to thousands of city employees who were previously only offered defined contribution (DC) 401(k)-style plans. The decision comes after the California Supreme Court overturned 2012’s Proposition B, a law that was passed after being voted on by the public. Proposition B shifted all city employees except police officers away from pensions to DC plans. The law was in effect from [...]

CORPaTH2022-02-07T15:57:10-08:00February 7th, 2022|Categories: Defined Benefit Plans|Tags: DB Plans, san diego|

Pension plans cheaper overall than 401(k)s, researchers find

By Emile Hallez Source: Investment News A pension research group has a message for employers: The switch from defined-benefit plans to 401(k)s has made retirement saving more expensive. That conclusion takes into account the costs borne by both employers and employees. Switching to a defined-contribution plan can of course save companies money, but the overall cost of the benefit increases, according to the National Institute on Retirement Security. The nonprofit this month published its third iteration of a paper [...]

CORPaTH2022-01-20T10:47:21-08:00January 20th, 2022|Categories: 401(k), Defined Benefit Plans|Tags: 401(k), DB Plans|

Milliman: Multiemployer pension funding rises to 92%

By Rob Kozlowski Source: Pensions & Investments The estimated aggregate funding ratio of multiemployer defined benefit plans in the U.S. reached 92% as of June 30, up from 88% at the end of 2020, according to a study from Milliman. The first six months of the year continued a strong market recovery that had already brought funding levels to their highest ratio since Dec. 31, 2007, when the level was 85%. The estimated investment return for Milliman's simplified portfolio [...]

CORPaTH2021-08-18T16:29:06-07:00August 18th, 2021|Categories: Multiemployer Plans|Tags: DB Plans, milliman|

PBGC and IRS Issue Guidance on Special Financial Assistance for Financially Troubled Multiemployer DB Pension Plans; Comments Requested

Source: IFEBP The Pension Benefit Guaranty Corporation (PBGC) and Internal Revenue Service (IRS) issued guidance on Special Financial Assistance (SFA) for financially troubled multiemployer defined benefit (DB) pension plans. PBGC issued an interim final rule implementing a new SFA Program. The American Rescue Plan Act of 2021 (ARPA) — passed by Congress and signed by President Biden on March 11, 2021 — contains provisions to provide an estimated $94 billion in assistance to eligible plans that are severely underfunded. Additionally, it assists [...]

CORPaTH2021-07-09T15:17:41-07:00July 9th, 2021|Categories: Multiemployer Plans|Tags: DB Plans, irs, PBGC, SFA|

Variable Benefit Plans a Solution for All Types of Plan Sponsors

By Rebecca Moore Source: Plan Sponsor Plan sponsors and others in the retirement plan industry have been showing an increased interest in new defined benefit (DB) plan designs that minimize cost volatility and/or provide risk sharing. During a recent webinar on the subject, Rachel Barnes, a member of the pension committee at the American Academy of Actuaries, noted that many corporate plan sponsors have been taking steps to transfer or eliminate their traditional DB plan obligations. While some have [...]

CORPaTH2021-05-13T08:05:26-07:00May 5th, 2021|Categories: Retirement|Tags: DB Plans, DC Plans, variable benefit plans|

DC Plans More Vulnerable to ERISA Litigation Than DB Plans

Source: AI-CIO.com Defined contribution (DC) retirement plans are far more susceptible to Employee Retirement Income Security Act (ERISA) lawsuits than defined benefit (DB) plans, lawyers argue in a lawsuit filed against The Wesco Distribution Inc. Retirement Savings Plan. “The potential for imprudence is much greater in defined contribution plans than in defined benefit plans,” said the lawsuit. The complaint, which alleges Wesco neglected its fiduciary duties by allowing excessive fees, said that companies with DC plans are much more [...]

CORPaTH2021-05-13T08:05:23-07:00April 21st, 2021|Categories: ERISA|Tags: DB Plans, DC Plans, erisa|

Too embarrassed to ask: what’s the difference between a defined benefit pension and a defined contribution pension?

A pension is simply a tax-efficient savings vehicle, or “tax wrapper”, that allows you or your employer to invest for your long-term future. For most of us, the main goal of a pension is to provide us with money to live off in later life, usually once we’ve retired from full-time employment. The rules governing pensions can seem confusing, particularly as the government fiddles with them at almost every other budget. But at the most basic level, there are [...]

CORPaTH2021-03-24T14:53:59-07:00March 24th, 2021|Categories: Defined Benefit Plans|Tags: DB Plans, DC Plans|