Should I Stay or Should I Go Now? An Analysis of Pension Structure and Retirement Timing. Working Paper No. 262-0322

Autor/inn/en	Goldhaber, Dan; Grout, Cyrus; Holden, Kristian; McGee, Josh
Institution	National Center for Analysis of Longitudinal Data in Education Research (CALDER) at American Institutes for Research
Titel	Should I Stay or Should I Go Now? An Analysis of Pension Structure and Retirement Timing. Working Paper No. 262-0322
Quelle	(2022), (38 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Teacher Retirement; Retirement Benefits; Time; Labor Turnover; Simulation; Public School Teachers; Eligibility; Teacher Characteristics; Incentives; Probability; Age Differences; Washington + Suchen Sie Ihr Suchwort? Retirement pay; Ruhegehalt; Zeit; Simulation program; Simulationsprogramm; Eignung; Anreiz; Wahrscheinlichkeitsrechnung; Wahrscheinlichkeitstheorie; Age; Difference; Age difference; Altersunterschied
Abstract	Over the last two decades, twenty-two states have moved away from traditional defined benefit (DB) pension systems and toward pension plan structures like the defined contribution (DC) plans now prevalent in the private sector. Others are considering such a reform as it is seen as a means of limiting future pension funding risk. It is important to understand the implications of such reforms for end-of-career exit patterns and workforce composition. Empirical evidence on the relationship between pension plan structure and retirement timing is currently limited, primarily because, most state pension reforms are so new that few employees enrolled in those alternative plans have reached retirement age. An exception, and the subject of our analysis, is the teacher retirement system in Washington State, which introduced a hybrid DB-DC plan in 1996 and allowed employees in its traditional DB plan to transfer into the new plan. Our analysis focuses on a years-of-service threshold, the crossing of which grants employees early retirement eligibility and, in many cases, a large upward shift in retirement wealth. The financial implications of crossing this threshold are far greater under the state's traditional DB plan than under the hybrid plan. We find that employees are responsive to crossing the yearsof-service threshold, but we fail to find significant evidence that the propensity to exit the workforce varies according to plan enrollment. (As Provided).
Anmerkungen	National Center for Analysis of Longitudinal Data in Education Research. American Institutes for Research, 1000 Thomas Jefferson Street NW, Washington, DC 20007. Tel: 202-403-5796; Fax: 202-403-6783; e-mail: info@caldercenter.org; Web site: https://caldercenter.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01