Retirement Security Law Commons^™

Promises To Keep: Ensuring The Payment Of Americans' Pension Benefits In The Wake Of The Great Recession, Kenneth G. Dau-Schmidt

Articles by Maurer Faculty

In this essay, I examine the problem of designing a pension plan within the context of our larger public policy of encouraging workers to save for retirement. I discuss the various problems and risks inherent in encouraging workers to adequately save for retirement, invest those assets efficiently, and ensure the planned level of retirement consumption for the remainder of their lives. I also discuss the three major types of pension plans in the American retirement system, defined benefit, defined contribution, and hybrid, and assess how well each of these types of plans deals with the problems encountered in designing a …