Traditional Pension System More Cost-Efficient for New York City than 401(k)s
The city of New York helps out taxpayers and retired public employees by sticking with a traditional defined-benefit pension plan rather than a 401(k) model, according to a new report issued by the National Institute on Retirement Security (NIRS). According to the NIRS release describing the report, ”A Better Bang for New York City’s Buck,” which was commissioned by New York City Comptroller John C. Liu:
New York City’s defined-benefit pension plans can deliver the same retirement income at a nearly 40 percent lower cost than a defined contribution 401(k)-type individual account.
