Converting traditional public pension plans to the
defined contribution model is suddenly a hot issue. Labor and
conservative legislators are squaring off, with many billions
in pension assets at stake
The Michigan governor pushed through a sweeping
conversion to a defined contribution system in just one
month. His success shows how public employee unions'
opposition to conversions can be diffused
Some providers are addressing concerns that their
mutual funds do not follow a consistent style. But some plan
sponsors, already fed up, are looking to funds-of-funds as
the ultimate solution.
More years at the helm of a mutual fund means better
performance, says an academic study. Plan sponsors and
consultants, too, tend to prefer the veterans.