Abstract:
Defined benefit plans were the main type of retirement plans offered by
companies up until the mid 1980s. From the mid 1980s to the present
there has been a dramatic increase in the number of defined contribution
plans. Companies discovered that defined contribution plans were more
beneficial to the company, which resulted in a large number of companies
switching the type of retirement plan they offer. This project will explore
the reasons why many companies have switched to defined contribution
plans and the methods that they have used to switch plans. The switch in
plans places more pressure on the employees to invest their money
appropriately in order to have sufficient funds for their retirement. This
project discusses the pros and cons of these two kinds of retirement plans.
This research conducted by M. Muniz.
