Defined Benefit v. Defined Contribution

The state's public retirement system recently studied a switch from defined benefit to defined contribution retirement plans.  Turns out defined contribution plans might not be cheaper for the government, after all.  You can find the story here on NHPR.

Overall defined contribution plans are fairly untested.  Only a few states have defined contribution plans, so there aren't a lot of examples of how defined contribution plans would pan out in the long term.

I don't think NH should jump on the defined contribution train just yet.  We'll see what the Republicans do in the 2012 session.