Behavioral economics perspectives on public sector pension plans

Behavioral economics perspectives on public s...
John Beshears, John Beshears
Behavioral economics perspectives on public sector pension plans by John Beshears, John Beshears
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Behavioral economics perspectives on public sector pension plans

"The NBER Bulletin on Aging and Health provides summaries of publications like this. You can sign up to receive the NBER Bulletin on Aging and Health by email. We describe the pension plan features of the states and the largest cities and counties in the U.S. Unlike in the private sector, defined benefit (DB) pensions are still the norm in the public sector. However, a few jurisdictions have shifted towards defined contribution (DC) plans as their primary savings plan, and fiscal pressures are likely to generate more movement in this direction. Holding fixed a public employee's work and salary history, we show that DB retirement income replacement ratios vary greatly across jurisdictions. This creates large variation in workers' need to save for retirement in other accounts. There is also substantial heterogeneity across jurisdictions in the savings generated in primary DC plans because of differences in the level of mandatory employer and employee contributions. One notable difference between public and private sector DC plans is that public sector primary DC plans are characterized by required employee or employer contributions (or both), whereas private sector plans largely feature voluntary employee contributions that are supplemented by an employer match. We conclude by applying lessons from savings behavior in private sector savings plans to the design of public sector plans"--National Bureau of Economic Research web site.

Publish Date
Language
English
Edition Availability
Cover of: Behavioral economics perspectives on public sector pension plans
Behavioral economics perspectives on public sector pension plans
2011, National Bureau of Economic Research
electronic resource / in English

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Edition Notes

Title from PDF file as viewed on 4/28/2011.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.

Published in
Cambridge, MA
Series
NBER working paper series -- working paper 16728, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16728.

Classifications

Library of Congress
HB1

The Physical Object

Format
[electronic resource] /

Edition Identifiers

Open Library
OL30655352M
LCCN
2011655950

Work Identifiers

Work ID
OL22631252W

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{{cite book|author=John Beshears |date=2011 |title=Behavioral economics perspectives on public sector pension plans |publication-place=Cambridge, MA |publisher=National Bureau of Economic Research |lccn=2011655950 |ol=30655352M}}