While the economic crisis has affected all retirement plan participants, it has highlighted the relative pros and cons of different plan designs. Defined contribution (DC) plan participants’ account balances have declined significantly, while some defined benefit (DB) plan members have become concerned about the future of their benefits.

Despite recent events, most employees say they are satisfied with their company’s retirement program. Those with a DB plan are more likely to be satisfied and cite their retirement plan as a key reason they stay with their employer than those with only a DC plan. Many workers are attracted to the security of DB plans, and nearly half indicate they would be willing to pay a higher amount out of their paycheck to ensure a guaranteed benefit in retirement. Employees, however, also want the portability of account-based plans, such as 401(k)s and hybrid pension plans, and the control over their investment decisions that DC plans provide.