Strategists: Don't cook the DB goose; 'Bad defined benefit plan is better than a good DC plan'.(News)(defined contribution plan)(Barclays Global Investors - M. Barton Waring)(Ford Foundation - Laurence Siegel)

Pensions & Investments, June, 2006 by Calio, Vince

Byline: Vince Calio A defined contribution plan shouldn't be used for retirement income, two leading investment strategists say. M. Barton Waring, managing director of client strategy at Barclays Global Investors, San Francisco, and Laurence Siegel, director of investment strategy at the $10.7 billion Ford Foundation, New York, assert that defined benefit plans are more efficient at providing retirement savings than defined contribution plans.

Their working paper, titled "Don't Kill the Golden Goose,'' is under consideration to be published by the Harvard Business Review. The paper comes at a time when some of the largest and most established corporations increasingly are considering freezing - or already have frozen- defined benefit plans in favor of...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.