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Committee on Ways and Means For Immediate Release **NOTE DATE and TIME CHANGE** Securing the Retirement Benefits of Americans Committee Explores Pros and Cons of Defined Benefit Pension Plans WASHINGTON - For years, corporations have offered their employees pension plans with defined benefits. Within these plans, employees were entitled to a set amount of retirement benefits based on a predetermined formula. Recently, more corporations are beginning to implement defined contribution pension plans. These plans involve the employer contributing a predetermined amount each year to the pension plan, with no guarantee as to the total benefits when the employee retires. The subcommittee has already examined the pros and cons of defined contribution pension plans. Next week, lawmakers will examine the details of defined benefit pension plans and their role in the financial security of retirees. They will also be exploring options that may increase worker participation in these plans. “In our continuing review of employee retirement security, we will hear about the strengths and weaknesses of defined benefit pension plans,” Oversight Subcommittee Chairman Amo Houghton (R-NY) said. “Recently, there has been an increase in the number of employers offering defined contribution plans. It is important for Congress to learn why employers have shifted away from defined benefit pension plans and the effect of this shift on retirement security.”
Click on the links for additional information: OV-14, and OV-14-Revised. |
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