ASPA's DB-K Proposal

[Dave Baker]

Does anybody know any details about the proposal being developed by ASPA for a "DB-K" plan?

Craig Hoffman mentioned it in his written statement provided today at a House Subcommittee on Oversight of the Committee on Ways and Means ...

"[The Enron situation] highlights the need to expand and reform the private pension system. This need is especially acute with respect to encouraging plan sponsors to adopt and provide defined benefit pension plans.... ASPA is developing a proposal that combines the best features of 401(k) plans-- participant choice-- with the best features of defined benefit plans-- a guaranteed benefit. We call it the DB-K and we would happy to discuss it more with you."

(Full statement is here:)

http://www.aspa.org/archivepages/gac/2002/...n_testimony.htm

[mbozek]

The last time anyone used the term guaranteed in connection with a 401(k) plan were insurers who issued guaranteed investment contracts and participants learned the limitation of the word 'guarantee' the hard way. Some employers already provide a DB-k in cash balance plans that allow employees to select investments in mutual funds.

[stephen]

I too am interested in more information on the DB-K. I searched the ASPA website and the only item found is the link Dave has included above to Craig Hoffman's testimony.