Abstract
Over the past 10 or 15 years, pension programs in the United States have been restructured from predominately defined benefit plans (DBPs) to defined contribution plans (DCPs). This shift was spurred by the increased costs, complexity and risks associated with ERISA and the increased availability of more flexible DCPs. This article examines two thrusts of the shift. The first is the emergence and expanded use of Section 401(k), 403(b) and 457 plans by relatively large organizations as either supplements to or substitutes for traditional DBPs. The second is the efforts of the federal government to encourage small businesses to provide retirement income programs for their employees. These efforts may be based on faulty assumptions and may be misdirected.
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