Transitions from career employment among public- and private-sector workers

2019 ◽  
Vol 18 (04) ◽  
pp. 529-548 ◽  
Author(s):  
Joseph F. Quinn ◽  
Kevin E. Cahill ◽  
Michael D. Giandrea
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Pension Plans ◽  
Full Time ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Private And Public ◽  
Public And Private Sector ◽  
Career Employment ◽  
Public Sector Workers

AbstractDo the retirement patterns of public-sector workers differ from those in the private sector? The latter typically face a retirement landscape with exposure to market uncertainties through defined-contribution pension plans and private saving. Public-sector workers, in contrast, are often covered by defined-benefit pension plans that encourage retirement at relatively young ages and offer financial security at older ages. We examine how private- and public-sector workers transition from full-time career employment, with a focus on the importance of gradual retirement. To our surprise, we find that the prevalence of continued work after career employment, predominantly on bridge jobs with new employers, is very similar in the two sectors, a result with important implications in a rapidly aging society.

scholarly journals Behavioral economics perspectives on public sector pension plans

2011 ◽  
Vol 10 (2) ◽  
pp. 315-336 ◽  
Author(s):  
JOHN BESHEARS ◽  
JAMES J. CHOI ◽  
DAVID LAIBSON ◽  
BRIGITTE C. MADRIAN
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Pension Plan ◽  
Pension Plans ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Public And Private ◽  
Savings Behavior ◽  
The Public ◽  
Public And Private Sector

AbstractWe 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 toward 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.

Pension and Health Benefits for Public-Sector Workers

2013 ◽  
Author(s):  
Lee A. Craig
Keyword(s):  
United States ◽  
Public Sector ◽  
Private Sector ◽  
Health Benefits ◽  
The United States ◽  
Pension Plans ◽  
Federal State ◽  
Defined Benefit ◽  
State And Local ◽  
Public Sector Workers

In the United States, retirement and health benefits make up a substantial proportion of the total compensation of public-sector workers. This chapter explores the history and the main characteristics of such retirement and health benefits, as they have developed in the United States. As shown, on average, these benefits tend to be more valuable than those provided to private-sector workers. Public-sector workers are more likely than their private-sector counterparts to be covered by a retirement plan and by employer-provided health insurance. Public-sector pension plans are more likely to be defined benefit plans than are private-sector plans. Many public-sector employers have promised their employees more in benefits than they have set aside to pay for those benefits. Estimates suggest that the 2,670 federal, state, and local retirement plans currently in operation are underfunded collectively by as much as $5 trillion, and public-sector health plans are probably underfunded by roughly $1 trillion.

An Introduction to Teacher Retirement Benefits

2010 ◽  
Vol 5 (4) ◽  
pp. 402-437 ◽  
Author(s):  
Janet S. Hansen
Keyword(s):  
Private Sector ◽  
Pension Plans ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Public And Private ◽  
Teacher Shortages ◽  
Retirement Benefits ◽  
Teacher Retirement ◽  
State And Local ◽  
Public And Private Sector

Like most other state and local government employees, teachers participate primarily in defined benefit pension plans whose benefits are largely based on final average salaries and length of service. Such pensions have been replaced in many private sector firms by defined contribution pensions. A number of questions have arisen about the feasibility and desirability of continuing to rely on defined benefit pensions for teachers. This article provides a brief history of teacher pensions and an overview of teacher retirement benefits today, including differences in the legal and economic context for public and private sector pensions that are important considerations in plan design. It then introduces issues related to financial sustainability, teacher mobility, and teacher shortages. The article concludes with an overview of key differences between traditional defined benefit and defined contribution plans and raises the possibility of adopting a “hybrid” kind of plan that includes features from both kinds of traditional plans.

Retirement incentives and behavior of private and public sector workers

2020 ◽  
pp. 1-17
Author(s):  
Courtney Coile ◽  
Susan Stewart
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Financial Incentives ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Quarter Century ◽  
The Past ◽  
Retirement Incentives ◽  
Retirement Behavior ◽  
Public Sector Workers

Abstract Over the past several decades, private sector workers in the USA with employed-sponsored pensions have experienced a dramatic shift from defined benefit (DB) to defined contribution plans, while this trend has been less pronounced for public sector workers. In this paper, we use data from the Health and Retirement Study to explore changes in the retirement incentives and retirement behavior of public and private sector workers over the past quarter-century. We find that both groups have become less likely to report having a DB pension or any pension. Compared to their private sector counterparts, public sector workers have a higher level of retirement wealth and a larger financial gain from continued work at older ages, and these differences by sector are growing across cohorts. Both groups respond to financial incentives in making retirement decisions. However, growing differences by sector in the gain to continued work do not appear to have translated into diverging retirement behavior, as we observe similar trends in the two groups.

Retirement and Pensions in American Economic History

2018 ◽  
pp. 354-374
Author(s):  
Robert Clark ◽  
Lee A. Craig
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Economic History ◽  
Pension Plans ◽  
Federal State ◽  
Defined Benefit ◽  
Retirement Plans ◽  
The Us ◽  
Defined Benefit Plans ◽  
State And Local

The proportion of the US population that survives to retirement age has increased over time, as has the share of the older population that retires. Higher incomes at older ages explain the increase in the incidence of retirement. Pensions provide much of that income. In general, public-sector workers, especially military personnel, were covered by pensions before their private-sector counterparts, and coverage in the public sector remains more widespread, and generous, than it is in the private sector. Public-sector pension plans are more likely to be defined benefit plans than are private-sector plans. Many public-sector employers have promised their employees more in benefits than they have set aside to pay for those benefits. Estimates suggest that the federal, state, and local retirement plans currently in operation are underfunded by as much as $5 trillion.

scholarly journals Giving Time: Examining Sector Differences in Volunteering Intensity

2019 ◽  
Vol 30 (1) ◽  
pp. 22-40 ◽  
Author(s):  
Stephen B Holt
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Public Administration ◽  
Local Level ◽  
Social Desirability Bias ◽  
Public And Private ◽  
Nationally Representative ◽  
The Difference ◽  
Public And Private Sector ◽  
Public Sector Workers

Abstract Sector differences in prosocial motivations and behaviors among workers receives a great deal of attention in public administration scholarship. Extant literature consistently finds public sector workers are more likely to engage in prosocial behaviors, such as volunteering, than their peers in the private sector. Less attention has been paid to the sector gap in volunteerism along the intensive margin. Using time-diary data, which accounts for potential social desirability bias, from a nationally representative sample, this study investigates the gap between public sector workers and their private sector counterparts. The results suggest that public sector workers spend more time, on an average day, volunteering than observably similar private sector peers, and the difference cannot be explained by other observable differences between public and private sector workers. The gap in volunteer intensity is largest at the local level and among teachers. The implications of these results for research and practice are discussed.

Leadership Style and Work Engagement: A Comparison of Private and Public Sector Firms in India

2021 ◽  
pp. 097226292110526
Author(s):  
Jain Mathew ◽  
Kohila Rajam ◽  
Sridevi Nair
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Leadership Styles ◽  
Leadership Style ◽  
Work Engagement ◽  
Public And Private ◽  
Public Sector Organizations ◽  
Private And Public ◽  
Private Sector Organizations ◽  
Public And Private Sector

Post-privatization, public sector organizations were encouraged to borrow and learn from private sector firms. The popular belief was that the human resource practices followed by private sector organizations were far superior and more effective than those of the public sector organizations. However, this claim lacks empirical proof. This study adds to this body of knowledge by comparing the level of work engagement in private and public sector firms of India. Given that the leadership is crucial in setting the tone of an organization, the study also analyses the dominant leadership styles and their relationship to the levels of work engagement. The study is descriptive in nature and utilizes a structured questionnaire to collect data. Individuals currently employed in Indian public and private sector firms, in managerial roles, were invited to record their responses. The final sample consisted of 240 employees, with equal representation from both sectors. The collected data was then analysed using SPSS. The findings suggested that the dominant leadership styles were not significantly different in public and private sector organizations. Private sector employees were found to be more engaged and the leadership style appeared to be significantly related to the levels of engagement in public sector firms only.

Public and Private Sector Manual Workers' Pay 1970-1977

1977 ◽  
Vol 82 ◽  
pp. 62-66 ◽  
Author(s):  
A.J.H. Dean
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Marked Improvement ◽  
Public And Private ◽  
The Public ◽  
The 1950S ◽  
Public And Private Sector ◽  
Public Sector Workers

The earnings of manual workers in the public and private sectors for the years 1970-77 are examined. The marked improvement in the relative pay of public sector workers which had been noted in earlier work is confirmed. It is found that in the period from 1970 to 1976 the relative pay of the public sector improved by over 10 per cent. In 1977 there was a movement back in favour of the private sector of about 2 1/2 per cent, but this still left the relative pay of public sector manual workers 10 per cent higher than in the 1950s and 1960s.

scholarly journals Challenges to Establish Effective Public-Private Partnerships to Address Malnutrition in All Its Forms

2021 ◽  
Author(s):  
Jessica Fanzo ◽  
Yusra Ribhi Shawar ◽  
Tara Shyam ◽  
Shreya Das ◽  
Jeremy Shiffman
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Food Systems ◽  
Conflicts Of Interest ◽  
Public Private Partnerships ◽  
Structured Interviews ◽  
Public And Private ◽  
Causal Pathways ◽  
Private And Public ◽  
Public And Private Sector

Background: Every country is affected by some form of malnutrition. Some governments and nutrition experts look to public-private partnerships (PPPs) to address the burden of malnutrition. However, nutrition-related PPPs face opposition, are difficult to form, and there is limited evidence of their effectiveness. Methods: We conducted a literature review and 30 semi-structured interviews with individuals involved in or researching nutrition-related PPPs to identify the factors that shape their creation and effectiveness in food systems. Results: Several factors make it difficult to establish nutrition-related PPPs in food systems: a lack of understanding of the causal pathways behind many nutrition problems; a weak architecture for the global governance of nutrition; power imbalances between public and private sector nutrition actors; and disagreements in the nutrition community on the advisability of engaging the private sector. These complexities in turn make it difficult for PPPs to be effective once established due to goal ambiguity and misalignment, resource imbalances, and weak accountability. Conclusion: If effective nutrition-related PPPs are to be established, private sector conflicts of interest must be addressed, trust deficits between private and public sector actors must be surmounted, and evidence must be assessed as to whether PPPs can achieve more for public health nutrition than private and public sector actors working separately.

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