Employer costs for defined benefit and defined contribution retirement plans

Source: U.S. Department of Labor, Bureau of Labor Statistics, The Editor’s Desk, December 26, 2012

Private industry employers now spend more per employee hour worked for defined contribution retirement plans (retirement plans that specify the level of employer contributions and place those contributions into individual employee accounts) than for defined benefit retirement plans (plans that provide employees with guaranteed retirement benefits that are based on a benefit formula). March 2012 private industry employer costs for defined contribution plans were 60 cents per employee hour worker, compared to 43 cents for defined benefit plans.