SURVEY SAYS: DC Plans as a Replacement for DB Plans

In a wide-ranging discussion of the New York public pension system, Thomas DiNapoli, the state's comptroller and sole trustee of the $133.8 billion New York State Common Retirement Fund (CRF), said 401(k) plans are not adequate to replace defined benefit plans.

Laws governing state pension funds shouldn’t be changed to allow defined contribution plans to replace defined benefit plans because 401(k) plans are “woefully inadequate for those who rely on them for their primary retirement income,” DiNapoli said in a speech December 12 at the New School’s Schwartz Center for Economic Policy Analysis in New York City (see DiNapoli: 401(k)s No Replacement for Pensions). 

This week, I’d like to know: Do you think defined contribution plans can provide retirement income as adequately as defined benefit plans?  And, what would it take for DC plans to do so?

Reply to this week’s survey by 6 p.m. today at