Defined-benefit (DB) pensions

[ChrisChristie4Pres]

The Great Recession sparked a debate over the use of traditional defined-benefit (DB) pensions in states and municipalities across the United States. Critics of these plans used the economic downturn, which strained government budgets and worsened pension finances, to advocate for major changes in public pension systems.

Although benefit cuts, increased employee contributions, and a rebound in stock prices have improved pension fund finances, severe underfunding remains a challenge in places where the problem predated the recession and was the result of lawmakers neglecting to make required contributions over many years.1 This is helping to sustain the idea that we can no longer afford to provide teachers, police, firefighters, and other civil servants with secure defined-benefit pensions.
http://www.epi.org/publication/will-switching-government-workers-to-account-type-plans-save-taxpayers-money/?utm_source=Economic+Policy+Institute&utm_campaign=22322c2ecc-EPI_News&utm_medium=email&utm_term=0_e7c5826c50-22322c2ecc-55884673