Skip to main content
  • Experts
  • Events
  • Briefing Book
  • Resources
  • About
  • Contact
  • Support
  • Fiscal Facts
Twitter
Facebook
Logo Site
  • Topics
    • Individual Taxes
    • Business Taxes
    • Federal Budget and Economy
    • State and Local Issues
    • Campaigns, Proposals, and Reforms
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Features
Research report

Collective Defined Contributions Plans

J. Mark Iwry, David C. John, Christopher Pulliam, William G. Gale
September 21, 2021
Download PDFPrint
Share

Primary tasks

  • Overview(active tab)
  • Full Report

Abstract

The long-term shift in the US retirement system from defined benefit pension (DB) plans to retirement saving accounts such as 401(k) plans and IRAs has transferred significant financial risks to workers, many of whom are ill-equipped to handle the contingencies. Collective defined contribution (CDC) plans offer a way to rethink risk sharing. CDCs permit employers to avoid the funding cost and volatility of guaranteed DB benefits while providing savers and retirees DB-like professional investment management and pooling, longevity risk pooling, and lifetime income.  To be effective, however, CDC plans need to address issues regarding expectations, equity, transition, and trust. If they can do so successfully, adding particular CDC features to conventional DB plans or 401(k) plans in appropriate circumstances could improve outcomes for workers, retirees, and employers. Looking beyond the conventional, traditional DB and DC plan designs to explore a new, richer, and more nuanced array of risk-sharing and pooling strategies is a welcome development that will help identify more optimal allocations of financial risks and retirement benefits.

Research Area

Individual Taxes
To reuse content from the Tax Policy Center, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

Meet the Experts

  • J. Mark Iwry
  • David C. John
  • Christopher Pulliam
    Research Analyst, Brookings Institution
  • William G. Gale
    Codirector
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
  • Donate Today
  • Topics
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Privacy Policy
  • Newsletters
Twitter
Facebook
  • © Urban Institute, Brookings Institution, and individual authors, 2022.