City moving to defined benefit plan for police, firefighters

Alexandria, Va., is converting its $100 million police and fire employees defined contribution plan to a defined benefit plan. "We're going against the national trend because we perceive that employees should not hold the investment risk," said Daniel Neckel, finance director. The new plan should be operational within a month. The city will be creating a pension division to manage the plan, and Segal Advisors is assisting with an asset allocation study that should be finalized soon. CIGNA will continue as administrator.