How to Make DB Plans Be More Viable

In order to make sure that the Future of DB Plan continues, we need to do the following:

(1)   Speak out and get those responsible for pension reform to consider making possible tax assisted contributions by employees to DB plans of the future.

(2)   If Number (1) is accomplished, amend DB plans to provide for participant contributions to share in the higher costs of DB plans versus DC plans.

(3)   Speak out and get those responsible for pension reform to rid ourselves of the uncertainty with regard to Cash Balance plans.

(4)   Move unreduced early retirement eligibility to higher restrictions

(5)   Make DB plans other than Cash Balance plans more portable

(6)   Put constraints on future guaranteed indexation

(7)   Consider more combo DB/DC approaches whereby the DB provisions are only open to long-term employees and mid-career or late-career hires.