A New Life for Pension Plans

Bucking the 401(k) trend, one union moves to a new type of defined-benefit plan in which employers and employees share the risk.

Don't ring the death knell for defined-benefit pensions just yet. A new effort is under way to rehabilitate these plans.

For workers struggling to manage their 401(k)s, employers' decades-long shift away from traditional, professionally managed pensions seems relentless -- and potentially disastrous. But now, one plan administrator is bucking the trend, backing away from a 401(k) that wasn't working for participants and adopting a new type of defined-benefit plan designed to reduce risks for both employers and workers.

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Eleanor Laise
Senior Editor, Kiplinger's Retirement Report
Laise covers retirement issues ranging from income investing and pension plans to long-term care and estate planning. She joined Kiplinger in 2011 from the Wall Street Journal, where as a staff reporter she covered mutual funds, retirement plans and other personal finance topics. Laise was previously a senior writer at SmartMoney magazine. She started her journalism career at Bloomberg Personal Finance magazine and holds a BA in English from Columbia University.