; Incentive to delay retirement already included in DB plans
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Incentive to delay retirement already included in DB plans

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If employers are going to use retirement benefits to provide incentives to employees to defer retirement, defined benefit plans offer a better mechanism than defined contribution plans. Even without modifying the design, a defined benefit plan generally has a built-in incentive for working longer. On the employer side, the actuarial calculations and funding issues of a defined benefit plan could be affected by employees deferring retirement. In general, qualified (defined benefit) plans could have provisions to encourage or discourage early retirement.

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									Incentive to delay retirement already included in DB plans
Barry B Burr
Workforce Management; Nov 2008; Docstoc
pg. 6




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