The Center for Education Data and Research has released a new report analyzing the Washington state’s teacher pension system. The system is of particular interest because, since 1996, it has given every participant a choice: enroll in a traditional defined-benefit plan, or enroll in a hybrid plan that combines features of both defined-benefit and defined-contribution plans.
Pension systems around the country are increasingly giving participants a similar choice, and many more systems are thinking of turning to hybrid plans in an effort to curb future underfunding problems.
So, does a choice-based system work? What outcomes does it produce?
Find out: Read the full report here.
Photo by cybrarian77 via Flickr CC License