Retirement Security Risks: What Role Can Annuities Play in Reducing Security Risks in Public Pension Plans?

Source: Diane Oakley, National Institute on Retirement Security (NIRS), Issue Brief, August 2015

From the press release:
A new research brief finds that most public defined benefit (DB) pension plans have effectively managed key retirement security risks – investment, adequacy, longevity and inflation risks. The research also finds that a shift to funding retirement benefits from public pensions to fixed annuities would be a more expensive approach – with 57 to 175 percent higher costs. The public workforce also could face diminished consumer protections if their benefits were provided as annuities. …..