This all changed in the 1980's and early 1990's. To raise federal revenues, the benefits of higher paid executives were repeatedly cut back. As a result, executives lost interest in defined benefit plans. Not surprisingly, the number of plans declined. In addition to incentives, we need to provide employers greater flexibility to design plans to meet the needs of their workforce.
Younger workers have different concerns and needs than older workers.
Employers have found that their younger workers often do not understand or appreciate traditional defined benefit plans. So employers have been creating new types of defined benefit plans, such as cash balance plans, that are more appealing to younger workers. These plans are also more portable than traditional defined benefit plans, another feature that appeals to younger workers. In closing, I am convinced that we will never achieve the goal of retirement income security for the vast majority of Americans without a strong defined benefit system. I want all workers to be able to enjoy a predictable, secure benefit for life because I believe the retirement security of millions of Americans will depend on it.