10. Defined Benefit vs. Defined Contribution Plans

The Georgia Association of Educators advocates for pension benefits on behalf of members of both the Teachers’ Retirement System (TRS) and the Public School Employees Retirement System (PSERS). GAE feels strongly that one of the most effective ways to protect both employment sectors’ interests is to advocate for the maintenance of a Defined Benefit pension plan. GAE strongly supports Defined Benefit (DB) Pension Plans and opposes any movement toward a Defined Contribution (DC) Plan or any type of hybrid plan that would include a Defined Contribution component that would compromise the current Defined Benefit structure. According to experts, a DB plan can do the same job at almost half the cost of a DC plan. There are fundamental differences in DB and DC plans. Here is how each plan works: