Pension Reform Assessment

GRS 18 Even with 30-year career, employee has 63% riskless annuity and the new structure is expected to provide retirement income in line with or above expert recommendations Social Security Current DB Alternative DB Alternative DC 100% 86% 84% 80% 83% 80% 23% 20% 17% 60% 51% 30% 30% 30% 40% 63% riskless annuity 20% 33% 33% 33% 33% 0% Current DB Alternate DB/DC DC earns 7.5% Alternate DB/DC DC earns 6.5% Alternate DB/DC DC earns 5.5% *Assumes DC plan can earn stated return during active employment and annuitize the balance at 5.00% actuarial equivalence at retirement 18 13

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