A new study released today finds that composite retirement plans would have fared better during the coronavirus pandemic and related market declines than traditional defined-benefit multi-employer plans, allowing participants to receive higher benefits and attracting more employer participants. The study makes it clear that employees and employers stand to benefit once Congress authorizes the use of composite plans.
“Composite plans are a voluntary approach with built-in guardrails to keep plans on track that would give plan sponsors a much-needed option as they look for ways to provide sustainable lifetime income to participants,” concluded the study’s author, Josh Shapiro with the Groom Law Group. “Our case study illustrates how the key composite plan features can provide greater long-term benefit security than current pension plans.”