The brief’s key findings are:
- State and local workers traditionally have had defined benefit (DB) pensions that insulate them from market risk and outliving their savings.
- But funding these plans has become more burdensome, leading sponsors to shift some risks onto workers by modifying DB plans or adopting new designs.
- As a result, 42 percent of plans for state and local workers now have risk-sharing features, though most workers still retain significant protections.