DB Redo?

This quarter sponsored by: Nuveen, a TIAA company

• Already have a DB plan in addition to the DC plan.
• As a small employer, a defined benefit plan is out of reach for us.
• Could be a comparative advantage when trying to attract and retain talent
• DB plans are too expensive.  We will meet employee needs in about any other way.
• DC plans are better as they allow employees to have a vested interest in their retirement goal; and do not place as much administrative/cost burden on the employer.
• Do not want to go back to unknown funding
• Great idea. The 401k model will not be enough for most of our population.
• How many DB plans are underfunded or go under every year?
• I am following closely to see if it starts a trend
• I don't see us going this direction as we froze our pension in 2017 and created a more robust 401k match
• I suspect that IBM has moved in this direction because of the Pension surplus they have. Makes business sense to suspend your $500M 401k matching contribution and let the pension surplus take care of the expense of providing retirement benefits for it snow smaller organization.
• I would be extremely surprised if many others followed suit. Interesting...
• If pension is overfunded, seems reasonable.
• It does not work well for our small plan
• It seems like an interesting cash management item - especially with the current flexible funding rules and very different interest rate environment.  Not sure that many other companies will follow suit but strategically can understand how for some it might make sense.
• It would be nice to do.
• its not a bad idea
• Might see a drop in savings for rank and file for increased opportunities for execs.
• Not a good idea.  It goes against all efforts to encourage employees to plan for retirement early.
• Not going to happen
• Not sure how this benefits employees
• Our employees would prefer to have more flexibility and control over their retirement accounts than a cash balance plan could offer. Many specifically would not be happy with the lack of growth investments they could benefit from.
• Overall, ending the 401(k) match is likely not a positive move from an employee benefits perspective, although it could help make up for the loss of match for some long-term employees.
• The risk tolerance of having a DB plan again is no longer there.
• this is going backwards, takes participants out of the saving practice,
• Too costly from a funding perspective.
• Way too expensive; not valued by most employees
• We already have an active DB plan.
• We already have open DB plans so not something we are considering but did not know how to best answer the question. We also have a company match within the 401(k) plan. Best of both worlds!
• We are a small company and do not have the expertise to manage a defined benefit plan.
• We are currently in a de-risking strategy of our retirement plans
• We do not want a defined benefit plan.