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Switch to DC driving US transition mgmt

22 August 2011

The death of US defined benefit plans is driving the need for transition management, reports Annabelle Palmer

Read more: Transition management defined benefit defined contribution JPMorgan State Street

The increasing trend for US firms to close down their defined benefit (DB) pension plans and switch to defined contribution (DC) alternatives is providing major growth opportunities for transition managers, according to senior players in the sector. The shift from DB schemes (where the investment risk is borne by the employer) to DC schemes (where the investment risk is borne by the employee) has been dramatic in the US. According to research by US think-tank the Employee Benefit...