The social insurance committee at the American Academy of Actuaries has released an issue brief arguing that a defined benefit system is the best approach to providing basic Social Security benefits.

Offering individual, defined contribution accounts could supplement the traditional defined benefit program, but “the defined benefit plan structure is a more efficient vehicle for providing the floor of protection needed by retired and disabled U.S. workers, particularly those who are most economically vulnerable,” AAA panel members write in the brief.

The brief includes a table comparing the advantages and disadvantages of defined benefit pension plans and defined contribution retirement plans.

A copy of the SOA Social Security brief is available