Question of the Week

How do defined benefit pension plans perform compared to defined contribution pension plans?

  •   On average, defined benefit pension plans outperform defined contribution plans by 1.8 percent annually.  Over a period of 25 years, this yields 34 percent higher returns for workers, saving taxpayers millions. To learn more about the strength of defined benefit pension plans, as well as a recent shift for public workers from defined benefit to defined contribution plans, watch the Joint Economic Committee’s hearing, “Your Money, Your Future: Public Pension Plans and the Need to Strengthen Retirement Security and Economic Growth” to be held Thursday, July 10 at 10:00am.