I am moving from a company with a defined benefit pension plan to one with a hybrid pension plan(DB + DC). I understand that the defined benefit pension plan uses a set formula to calculate the monthly payout on retirement. Let us say, using some standard assumptions, that payment comes to 2000$ per month starting age 65.

The hybrid plan is very confusing to understand. It has a defined benefit component but I cannot find the formula. It has a DC plan that I believe I need to manage myself like a regular retirement investment account.

My question is, how can I estimate how much money I lost by moving from DB to hybrid plan, so I can factor that in my salary negotiations?

  • 1
    It's going to be pretty hard to answer this without the formulas for both the new and old pension plans. – stannius Apr 25 '19 at 19:32
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    With a defined contribution scheme, nobody knows what you will lose, if anything. It all depends how the stock market does between now and when you retire. The purpose of a DC scheme, over a DB scheme, for the employer is to transfer the risk to you. – Simon B Apr 25 '19 at 19:37
  • Are you changing companies or is the company changing retirement plans? – mhoran_psprep Apr 26 '19 at 10:12

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