Defined benefit pension plans outperformed 401(k) plans by a wide margin in 2011.
New research by Towers Watson looked at the investment returns of more than 2,000 plan sponsors. It found that the median investment return for DB plans was 2.74 percent in 2011, while DC plans had median returns of -0.22 percent.
The nearly 3-percentage-point difference is the widest margin by which DB plans outperformed DC plans since 1995, when Towers Watson first analyzed the rates of returns for both types of plans.
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