Have localities shifted away from traditional defined benefit plans?

Abstract

The brief's key findings are: In 2018, 19 percent of large localities had a defined contribution (DC), cash balance, or hybrid plan for new hires, instead of a stand-alone defined benefit (DB). The volume and geography of alternative plans at the local level is similar to that of states, but localities are more likely to offer a DC plan. Government contribution rates for the local alternatives are lower than for the DBs they replaced, and employees are likely to see lower investment returns. But cost reduction will be gradual as the alternative plans are primarily for new hires.