You did What with my Retirement? Moral Hazard, The Pension Benefit Guarantee Corporation and Pension Plans
There is a changing landscape in employer sponsored pensions where defined benefit plans are being phased out of the workplace in favor of less risky and less costly defined contribution plans. As companies move away from the once considered "secure" defined contribution plans, employee's financial futures are being jeopardized. This paper seeks to examine the reasons why freezing or terminating defined contribution plans is a new trend for large companies and the implications this will have on retirement security. This trend is further influenced by the moral hazard problem created by the government back Pension Benefit Guaranty Corporation as companies realize the safety netting created by this insurance agency.
Professor Matt Warning
Date of Completion
Brozena, Scott, "You did What with my Retirement? Moral Hazard, The Pension Benefit Guarantee Corporation and Pension Plans" (2006). Economics Theses. 14.