Our country continues to operate a defined benefits plan while most businesses have moved to a defined contribution plan.
A government-run defined contribution plan would almost certainly have to have some kind of guaranteed payment floor to be politically viable, which would encourage serious moral hazard in investing.
I also wonder how many companies can offer defined contribution plans because their employees are also automatically part of a defined benefit plan (i.e., social security).
A government-run defined contribution plan would almost certainly have to have some kind of guaranteed payment floor to be politically viable, which would encourage serious moral hazard in investing.
I also wonder how many companies can offer defined contribution plans because their employees are also automatically part of a defined benefit plan (i.e., social security).