Defined Benefit Plan

A defined benefit plan (DB) is a pension plan where the plan sponsor such as an employer assumes responsibility for directing and managing all plan assets. In contrast to a defined contribution plan, the plan sponsor assumes market risk under a defined benefit plan. In addition, the plan sponsor would often assume responsibility for converting accumulated assets into a stream of income for the plan participant—thus performing a function that is similar to an annuity in many ways. The number of defined benefit plans has decreased significantly over the past 20 years.

Mark Warshawsky on the Retirement Income Market

Mark J. Warshawsky is Director of Retirement Research at Towers Watson.

Dr. Warshawsky served as assistant secretary for economic policy at the U.S. Treasury Department from 2004-2006 and he has held senior level economic research positions at the Federal Reserve Board, the Internal Revenue Service and...

Treasury Department Focuses on Longevity Risk with Retirement Income Guidance

The Treasury Department just released a proposed set of regulations that could have a meaningful impact on the retirement income market in the U.S.

The Treasury’s guidance package builds on feedback received in response to the request for comments issued by the Labor and Treasury Departments last fall.

The...

Record High Deficits for Defined Benefit Pension Plans

Defined benefit pension plans are the traditional and increasingly rare type of pension plans offered through employers. In contrast to defined contribution pension plans such as the 401(k), participants in defined benefit (“DB”) plans receive contractually guaranteed income and assume none of the risks (investment risk, interest rate risk , longevity risk , etc) associated with producing that lifetime income stream. The problem is that defined benefit plans are scarce, and many of...

MetLife is Nudging the World of Defined Contribution toward Income Annuities

Jody Strakosch is the National Director for MetLife’s Retirement Products Group.  In this role, Jody has a broad perspective on developments in the institutional space.  In other words, Jody is intimately familiar with how in-plan accumulation and point of retirement annuities are evolving in the defined contribution arena. 

The...

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Anna Rappaport on Annuities and Planning for the Long Term

Anna Rappaport is widely recognized as a leading expert on retirement systems, workforce issues, the impact of changing demographics and women’s...

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