The Shift from DB to DC Coverage: A Reflection on the Issues

Abstract

This paper takes as its point of departure the shift in workplace pension coverage from defined-benefit (DB) pension plans to defined-contribution (DC) pension plans. The central concern of the paper is to identify the public policy issues that should be addressed to help members of DC pension plans use these vehicles more effectively. Measures that might enhance the predictability of DC outcomes, lower administrative costs, or facilitate decision-making receive particular attention. Unresolved research issues related to the topic and gaps in available data are also noted.