Document Type

Occasional Paper

Publication Date

6-2010

Abstract

We provide an overview of retirement plan proposals that could be implemented at the state level. All aim to increase participation in retirement savings, mainly by lowering the cost of doing so and possibly by offering some employer or government matches to employee contributions. The proposals vary widely on how much risk employees are exposed to. Some proposals leave most of the risks of saving for retirement – investment, market, and longevity risk – with the employee, while others try to eliminate them all. The tools of risk management range from well-diversified index funds and default investments to required offers of annuity investments and traditional defined benefit pensions. The summary of the existing proposals thus provides a good sense of the possibilities for state policymakers to manage the balance of risk exposure between individuals and employers.

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