Major League Baseball owners are considering changes to pensions for non-athlete employees, including a possible option to eliminate the pension plan for new hires. Talks are still ongoing, and a vote is scheduled to take place in early May. If MLB owners do decide to cut pensions for new hires, they will contribute to a growing shift away from defined benefit plans among private employers, according to PRC Executive Director, Olivia S. Mitchell, who noted, “private-sector employers have been pulling out of defined-benefit pensions for 30 years. It’s been a steady trend, punctuated by big drops. Part of the reason is that defined-benefit plans ended up being a lot more expensive and imparting a lot more volatility to the company’s bottom line than anyone had anticipated.”
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