Source: Ilana Boivie and Beth Almeida, National Institute on Retirement Security, October 2008

Freezing a defined benefit (DB) pension will involve increased costs, reduced benefits, or some combination thereof, according to a new research brief issued by the National Institute on Retirement Security.

“Look Before You Leap: The Unintended Consequences of Pension Freezes,” finds that freezing a DB plan can have serious and unintended consequences. “The research indicates that caution is the watchword for decision makers — particularly state and local governments — grappling with fiscal challenges,” said NIRS executive director.
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