Tom Bleakney This is Me

 Web References

1. 1. Public funds looking at hybrids of defined benefit and defined contribution plans

   www.assetpub.com/archive/ps/95 - [Cached]

   Published on: 3/10/2001   Last Visited: 3/10/2001

   Tom Bleakney , consulting actuary with Milliman & Robertson in Seattle , notes that many public plans started out as defined contribution structures , but converted when they were ravaged by inflation in the post-war years.
   
   Also , the options available in the public sector are significantly different from those corporations can access. Most public systems are not changing over to pure defined contribution plans , in part because the structures available to them have serious limitations ( see Supplemental savings vehicles only , page 32 ) . Most do not include employer matches and loan provisions-two of the most important inducements to participate in corporate plans.
   
   Among other drawbacks , 457 participants are stuck with an Internal Revenue Code contribution limit of just $ 7 , 500 a year-a ceiling advocates have been unable to convince Congress to raise. Employees of non-profit institutions can save through 403 ( b ) plans , which are like 401 ( k ) s in that both have a higher , $ 9 , 240-a-year contribution limit.