ERISA,
DC Plans & Stable Value
October 14, 2014
Presenters:
Jan Jacobson, American Benefits Council
Donald Myers, Morgan Lewis
Michael Richman, Morgan Lewis
Gary Ward, Prudential Financial
Changing Roles for Individuals and Employers
Defined Benefit to Defined Contribution Shift
Number of DB and DC Plans, 1975-2011
600,000
1975
Plans with fewer than 100
participants
500,000
400,000
Defined Benefit
563,070
2011
Plans with more than
100 participants
Defined Contribution
Defined Benefit
Defined
Contribution
300,000
199,161
200,000
83,111
75,320
100,000
20,035
9,839
35,418
8,587
0
Defined Benefit Plans with <100
Participants
Defined Contribution Plans with
<100 Participants
Defined Benefit Plans with >100
Participants
Source: U.S. Department of Labor, “Private Pension Plan Bulletin Historical Tables and Graphs (2013)
Defined Contribution Plans with
>100 Participants
Changing Roles for Individuals and Employers
Defined Benefit to Defined Contribution Shift
1975
2011
Plan Assets ($ 000’s)
$4,000,000
Disbursements ($ 000’s)
3,829,487
Defined Benefit
$3,000,000
Defined
Contribution
2,516,209
$300,000
$250,000
Defined Benefit
$200,000
$2,000,000
Defined
Contribution
172,549
$150,000
$100,000
$1,000,000
$50,000
185,450
12,903
74,013
$0
6,161
$0
DB
DC
Source: U.S. Department of Labor, “Private Pension Plan Bulletin Historical Tables and Graphs (2013)
DB
299,335
DC
Balancing Revenue and Benefits Policy
Tax Expenditures, Fiscal Years 2015-2019
(in millions of dollars)
1,400
1,200
1,000
1,151
800
600
649
400
456
200
291
276
0
Exclusion of employer
contributions for
medical insurance
premiums and medical
care
Exclusion of employersponsored pension
plan contributions and
earnings (DB & DC)
Deductibility of
mortgage interest on
owner-occupied
homes
Source: U.S. Office of Management and Budget, Fiscal Year 2015 Analytical Perspectives, Table 14-3
Deductibility of nonbusiness state and local
taxes
Deductibility of
charitable
contributions, other
than education and
health