Sharing defined benefit pension costs: A survey of public sector practices

Sharing defined benefit pension costs: A survey of public sector practices

Defined benefit pension plans have long been a primary method by which state and local governments provide retirement security for public employees. Under these pension plans, retired public workers receive a predetermined monthly benefit based on their years of service and salary history. This analysis explores how public-sector employers share and allocate defined benefit pension costs between employers —taxpayers— and employees, compares thes…