The federal government moved in that direction with most new hires, around 1987. The Thrift Savings Plan is a 401(k) like program. There is still a defined benefit element, but for those hired in 1987 or later, it is a much less significant portion than had been the case.

I believe that the State of Michigan took similar action in the 1990s.

Has any state completely jettisoned defined benefit plans? I have my doubts. And that goes double for government-run school systems.

• posted by John LaPlante
• August 21, 2007 @ 11:27 am
• Permalink

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