Defined benefit (DB) pension plans have suddenly gained new support, with employers, unions, and benefits experts now talking up the retirement plan model—which once was seen by many as relic of the past. Although defined contribution (DC) plans have become the standard retirement benefit offered by most employers, recent events suggest that some may take a new look at DB pensions. Forbes magazine announced a new IBM decision to return to DB plans with prominent picture of a dinosaur. The Wall Street Journal published an opinion piece with the headline: “Bring Back Corporate Pension Plans. That effort failed, but the UAW contracts did include increases in 401(k) contributions of the employees’ DC retirement benefits, and it is likely that the union will revisit the question at some point in the future.

Source: Forbes December 04, 2023 13:40 UTC