Defined Benefit Retirement Programs Like FERS Increasingly Rare

A report for Congress has charted the continuing decline of defined benefit retirement programs —such as the federal FERS and CSRS systems—that pay annuities based on factors such as years of service and earnings, with continued growth in defined contribution programs—such as the federal TSP—which accumulate value based on levels of investment and rates of return.

While federal employees have both types of benefits, the Congressional Research Service said that over 2010-2025 the percentage of private sector employees with access to defined contribution programs rose from 59 to 70 percent.

Because of that growth, over that time the percentage with at least one type of retirement plan rose from 65 to 72 percent.

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