At the NY Times Room for Debate several experts and economists discuss the pros and cons of moving public employees to defined contribution plans. On the con side, Alicia Munnell of the Center for Retirement Research at Boston College argues defined contribution plans are more costly to operate. And Monique Morrissey of the Economic Policy Institute calls defined contribution plans a "cash cow" for Wall Street. Though her critique doesn't explain the aggressive investment strategy underlying defined benefit plans that bank on above average stock market returns. Economist Joshua Rauh is in favor of public employees switching to DC plans, while noting that such a switch should be tailored to reflect the needs of public workers and modeled after the federal Thrift Savings Program.
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phone (212) 599-7000 / fax (212) 599-3494
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