RJ and Makay

Corporations have been doing it for many years to save money, and now many states are seeking to follow suit. The strategy: switch employee retirement plans from the more costly traditional defined benefit (DB) type to a potentially cheaper defined contribution (DC) plan.

In fact, there's currently a push for DC plans in 10 states — Arizona, California, Florida, Kansas, Kentucky, Nevada, New Hampshire, North Carolina, Virginia, and Wisconsin. Some of these states are combining efforts to introduce DC plans or DC/DB hybrids with attempts to eliminate or limit collective bargaining rights by unions.