Policymakers in your state have been talking about shifting from a defined benefit pension plan to a defined contribution pension plan or a hybrid alternative for new state employees. You work for a state legislator who asks you to research the pros and cons of making the change.

Required
Access the Center for Retirement Research and locate two of its publications:“A Role for Defined Contribution Plans in the Public Sector,” at http://crr.bc.edu/ wp-content/uploads/2011/04/slp_16.pdf and “Defined Contribution Plans inthe Public Sector: An Update,” at http://crr.bc.edu/wp-content/uploads/ 2014/04/SLP_37-1.pdf. The publications describe the differences between defined benefit and defined contribution plans and discuss hybrid plan alternatives. Additionally, information is provided on the direction state governments are taking with regard to pension plans. Prepare a memo for the legislator that addresses the following:

a. Briefly define a defined benefit plan and a defined contribution plan. What is a hybrid plan?
b. When considering a change of pension plan, what are the primary considerations mentioned in the publications?
c. According to the update, in what direction have states been moving with regard to pension plans since the financial crisis relative to the period prior to the financial crisis?

d. Based upon your review of the publications, what would be your recommendation to the legislator? Briefly explain the reason for your recommendation.