Labor Market Effects of Pensions and Implications for Teachers

2010 ◽  
Vol 5 (4) ◽  
pp. 463-491 ◽  
Author(s):  
Leora Friedberg ◽  
Sarah Turner
Keyword(s):  
Labor Market ◽  
Pension Plans ◽  
Defined Benefit ◽  
Fixed Income ◽  
Teacher Labor Market ◽  
Market Effects ◽  
Retirement Security ◽  
Retirement Timing ◽  
Key Features ◽  
K 12

While the retirement security landscape has changed drastically for most workers over the last twenty years, traditional defined benefit (DB) pension plans remain the overwhelming norm for K–12 teachers. Because DB plans pay off fully with a fixed income after retirement only if a teacher stays in the profession for decades and yield little or nothing if a teacher leaves early, DB plans induce a strong, nonlinear relationship between years of tenure and benefit accrual. One implication is that as many current teachers approach eligibility for full pensions, there are strong incentives for retirement and associated consequences in the teacher labor market. In this article, we assess the key features of DB plans, discuss the general incentive effects, and consider the application to the particular case of teachers. This work highlights the importance of assessing the characteristics of teachers who respond most to the retirement timing incentives.

scholarly journals Retirement Security in an Aging Population

2014 ◽  
Vol 104 (5) ◽  
pp. 1-30 ◽  
Author(s):  
James M. Poterba
Keyword(s):  
Well Being ◽  
Pension Plans ◽  
Support Program ◽  
Standard Of Living ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Private Pensions ◽  
Elderly Individuals ◽  
Income Sources ◽  
Retirement Security

Elderly individuals exhibit wide disparities in their sources of income. For those in the bottom half of the income distribution, Social Security is the most important source of support; program changes would directly affect their well-being. Income from private pensions, assets, and earnings are relatively more important for higher-income elderly individuals, who have more diverse income sources. The trend from private sector defined benefit to defined contribution pension plans has shifted responsibility for retirement security to individuals. A significant subset of the population is unlikely to be able to sustain their standard of living in retirement without higher pre-retirement saving.

Surplus deferred pension compensation for long-term K-12 employees: an empirical analysis for the Denver Public School Retirement System and four state plans

2010 ◽  
Vol 10 (3) ◽  
pp. 457-483 ◽  
Author(s):  
MICHAEL V. MANNINO ◽  
ELIZABETH S. COOPERMAN
Keyword(s):  
Public School ◽  
Age Groups ◽  
Pension Plans ◽  
Defined Benefit ◽  
Present Value ◽  
Data Set ◽  
Deferred Compensation ◽  
Retirement Benefits ◽  
Retirement System ◽  
K 12

AbstractThis study uses a unique data set of retiree characteristics and salary histories for administrators, teachers, and non-professional employees of the Denver Public School Retirement System (DPSRS) to analyze surplus deferred compensation for DPSRS and four state K-12 defined benefit pension plans. We find sizable levels of surplus deferred compensation for each plan, with significant differences across plans, job classes, and age groups. Across plans, differences in cost of living allowances impact the expected present value of retirement benefits more than benefit table differences when controlling for each respective factor. Somewhat surprisingly, the plans in our study with the largest present value of future benefits had lower employee contribution rates. Pension wealth for reduced benefits showed larger wealth accrual at younger ages than full, unreduced benefits, and younger cohorts starting work at an earlier age received significantly higher surplus deferred compensation.

Labor market aspects of state and local retirement plans: a review of evidence and a blueprint for future research

2011 ◽  
Vol 10 (2) ◽  
pp. 337-361 ◽  
Author(s):  
LEORA FRIEDBERG
Keyword(s):  
Labor Market ◽  
Local Governments ◽  
Pension Plans ◽  
Future Research ◽  
Defined Benefit ◽  
Retirement Plans ◽  
Public And Private ◽  
State And Local ◽  
State Pension ◽  
Government Workers

AbstractTraditional defined benefit (DB) pension plans remain the overwhelming norm for teachers, policemen and other employees of state and local governments. The incentives for workers with DB pension plans to stay in their jobs shift dramatically over the course of their careers. Moreover, limited transferability of pension wealth across states and between public and private jobs impedes mobility in the labor market. Yet, little is known about the labor market effects of pensions on state and local government workers. The literature on private-employer pensions has made contributions on some of these fronts in recent years that can shed light on policy concerns raised by the possibility that pension plans will be modified in coming years. Moreover, some of the limitations constraining research on pensions may be overcome by focusing on government workers, with recent work on public school teachers pointing the way. Very recent studies are finding strong retirement responses to age- and tenure-related incentives built into state pension plans.

Managing the Conflicting Interests of Workers and Shareholders: Evidence from Pension-Assumption Manipulations

ILR Review ◽  
2018 ◽  
Vol 72 (3) ◽  
pp. 523-551 ◽  
Author(s):  
J. Adam Cobb
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Pension Plans ◽  
Defined Benefit ◽  
Multiple Stakeholders ◽  
Current Period ◽  
Retirement Security ◽  
Conflicting Interests ◽  
To Receive ◽  
Over Time

Whereas research on corporate governance typically attends to the conflicting interests between shareholders and executives, in practice executives must frequently adjudicate the demands of multiple stakeholders. To investigate how executives cope with the divergent interests of workers and shareholders, the author examines how much firms claim they will earn on the assets in their defined benefit (DB) pension plans. In a DB arrangement, employees forgo wages in the present in order to receive postretirement income, and they rely on executives to properly fund and manage plan assets. Executives, however, can increase the amount they expect the firm to earn on plan assets, which increases firm earnings in the current period but may undermine workers’ retirement security if expectations do not match actual returns over time. The author shows that the influence and interests of employees and shareholders as well as the decision-making schemas of the CEO affect whether executives exercise this discretion.

Teacher Labor Market (Bursa Tenaga Kerja Guru): Kajian Teknologi Pendidikan

2018 ◽  
Vol 1 ◽  
Author(s):  
Baharuddin Baharuddin ◽  
St. Rajiah Rusydi
Keyword(s):  
Labor Market ◽  
Teacher Labor Market ◽  
Teacher Labor

Tujuan artikel ini upaya meningkatkan kemampuan guru dalam menguasai berbagai kompetensi, sehingga dapat menjalankan tugas dan kewajibannya secara profesional. Sertifikasi guru merupakan modal dasar bagi guru untuk mengembangkan profesinya secara terus-menerus sepanjang kariernya sebagai guru, yang pada gilirannya memberikan kontribusi bagi terwujudnya pendidikan yang bermutu. Melihat konsep tenaga kerja guru menjelaskan bahwa keefektifan guru digunakan untuk merujuk pada hasil kerja yang dicapai guru atau sejumlah kemajuan yang diraih siswa dalam rangka pencapaian tujuan-tujuan khusus pendidikan. Artikel ditulis dengan kajian literatur dengan hasil mengindentifikasi bagaimana luasnya variasi faktor-faktor permintaan dan penyaluran yang berdampak pada komposisi dan distribusi kekuatan kerja para tenaga pengajar sebagaimana halnya para guru; atribut guru dan berbagai kebijakan kemampuan kerja guru yang berdampak pada para lulusan, secara umum.

Optimal ALM strategies for defined benefit pension plans

2000 ◽  
Vol 2 (2) ◽  
pp. 47-69 ◽  
Author(s):  
Arun Muralidhar ◽  
Ronald van der Wouden
Keyword(s):  
Pension Plans ◽  
Defined Benefit ◽  
Defined Benefit Pension Plans
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