Sanford Contributes Report about Trends in Public Employee Retirement Plans
As the choices and expenses related to retiree benefits continue to change, government administrators can learn about the current state of defined contribution (DC) plans and trends in the public sector with a new, comprehensive report. The paper was coauthored by Paula Sanford from the Vinson Institute's local government services unit at the request of the Center for State and Local Government Excellence (CSLGE) and the National Association of Government Defined Contribution Administrators (NAGDCA). Titled "The Evolving Role of Defined Contribution Plans in the Public Sector," the report is a significant contribution to the important topic of public sector retirement benefits and how to administer them in a fiscally responsible way.
Sanford and Joshua Franzel from CSLGE wrote the report as part of a joint project between CSLGE and NAGDCA. The purpose was to provide an objective look at how governments have incorporated DC plans into their retirement benefits packages in recent years. The report describes how organizations have reformed their DC plans over time and explores ways to improve plans and make them more productive for beneficiaries.
Additionally, the report discusses how much savings individuals need for retirement and how DC plans can be effective at obtaining that level of savings. Sanford and Franzel emphasize the need for education and improved financial literacy for beneficiaries. The report also investigates best practices for ideal plans and when different features—such as auto-enrollment—are appropriate.
Finally, the report explains the impact of annuities and what benefit managers must consider when incorporating them into their plans. Ultimately, the paper is a guide for state and local government retirement benefits managers to help them navigate a complex array of decisions that have major fiscal impact on both government budgets and public employees.
