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Sagitec Blog

Sagitec is helping their public pension clients implement defined contribution plans

Less than 30 years ago, defined contribution (DC) retirement plans were a rather novel retirement savings vehicle. Now, DC plans are the most popular employer-sponsored retirement plan in the United States, according to the American Benefits Counsel.  Within the public sector, DC plans are playing an ever more increasing role in state and local retirement programs.

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NCTR Chief Shares Why DC Plans are "Inadequate" for Retirement Security

Over the last 25 years, the pendulum in the public pension industry has been swinging from Defined Benefit (DB) plans to Defined Contribution (DC) plans. Powerful advocates in the government and financial sectors have proclaimed that DC plans are the key to reforming a broken pension industry, regardless of the state of the economy. In a bear market, DB plans are unsustainable they say. They put state and local agencies on the path to inevitable failure. On the other hand, in a bull market, DC plans significantly outperform DB plans. Why wouldn’t a pension fund want to follow the DC model?

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