Defined Contribution Plans Emerging in the Public Sector The Manifestation of Defined Contributions and the Effects of Workplace Financial Literacy Education

This article discusses the history of the Employee Retirement Income Security Act (ERISA). The implementation of the act developed an environment for employers, public and private, to transition from defined benefit (DB) retirement plans to defined contribution (DC) retirement plans. This transition has many implications for both employers and employees. The article argues that the transition to DC retirement plans is becoming more prevalent in the public sector and it suggests that the implementation of a workplace financial literacy program can enhance public employees' ability to make better decisions with regard to financial behavior and retirement planning. The article presents a nonexperimental single group pretest/posttest design to investigate the effects of a workplace financial literacy program. The findings suggest that participants are less stressed, more satisfied with their financial situation, less worried about monthly living expenses, and more confident about overcoming financial emergencies.