A recent study by the National Institute for Retirement Security concluded that the cost to
deliver the same level of retirement income to a group of employees is 46% lower in a DB plan than it is in a DC plan. So how is it, then, that employers save money by moving from DB to DC plans? The study notes that employers almost always cut the average employee benefit in the process through a reduction in employer contributions. Per the study, DB plans provide a more efficient use of taxpayer funds when offering retirement benefits to state and local government employees.