In this respect, a further development of risk-pricing would help gain deeper insight into risk differences between pension systems. This brings me to a second key issue in the design of corporate pension plans: how to decide on investment policy and who should bear the residual risks?
Investment policy and responsibility Let me put this more bluntly: is a shift to defined contribution schemes the optimal way to reduce pension risks for employers? I doubt it. In 401(k) plans, the individual decides what part of his wage he wishes to transfer to his 401(k) account.