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Author: Colleen N. Flaherty Manchester Publisher: ISBN: Category : Languages : en Pages :
Book Description
The relationship between retirement plan type and job mobility is more complex than typically considered. While differences in plan features and benefit structure may directly affect employees’ mobility decisions (“incentive effect”), the type of plan offered may also affect the types of employees a given employer attracts (“selection effect”), thereby affecting mobility through a second, indirect channel. At the same time, some employees may not be able to accurately assess differences between plan types due to limited financial literacy. These factors have implications for policymakers and employers considering retirement plan offerings.
Author: Colleen N. Flaherty Manchester Publisher: ISBN: Category : Languages : en Pages :
Book Description
The relationship between retirement plan type and job mobility is more complex than typically considered. While differences in plan features and benefit structure may directly affect employees’ mobility decisions (“incentive effect”), the type of plan offered may also affect the types of employees a given employer attracts (“selection effect”), thereby affecting mobility through a second, indirect channel. At the same time, some employees may not be able to accurately assess differences between plan types due to limited financial literacy. These factors have implications for policymakers and employers considering retirement plan offerings.
Author: Gopi Shah Goda Publisher: ISBN: Category : Economics Languages : en Pages : 0
Book Description
Employer-provided pension plans may affect employee mobility both through an "incentive effect," where the bundle of benefit characteristics such as vesting rules, pension wealth accrual, risk, and liquidity affect turnover directly, and a "selection effect," where employees with different underlying mobility tendencies select across plans or across firms with different types of plans. In this paper, we quantify the role of selection by exploiting a natural experiment at a single employer in which an employee's probability of transitioning from a defined benefit (DB) to a defined contribution (DC) pension plan was exogenously affected by default rules. Using regression discontinuity as well as differences-in-regression-discontinuities (DRD) methods, we find evidence that employees with higher mobility tendencies self-select into the DC plan. Our results suggest that selection likely contributes to the observed positive relationship between the transition from DB to DC plans and employee mobility in settings where employees sort into plans or employers. Counter to conventional wisdom, we find a negative direct effect of the DC plan on turnover relative to the DB plan, which underscores the multi-dimensional difference between these plans.
Author: Gopi Shah Goda Publisher: ISBN: Category : Economics Languages : en Pages :
Book Description
Employer-provided pension plans may affect employee mobility both through an "incentive effect," where the bundle of benefit characteristics such as vesting rules, pension wealth accrual, risk, and liquidity affect turnover directly, and a "selection effect," where employees with different underlying mobility tendencies select across plans or across firms with different types of plans. In this paper, we quantify the role of selection by exploiting a natural experiment at a single employer in which an employee's probability of transitioning from a defined benefit (DB) to a defined contribution (DC) pension plan was exogenously affected by default rules. Using regression discontinuity as well as differences-in-regression-discontinuities (DRD) methods, we find evidence that employees with higher mobility tendencies self-select into the DC plan. Our results suggest that selection likely contributes to the observed positive relationship between the transition from DB to DC plans and employee mobility in settings where employees sort into plans or employers. Counter to conventional wisdom, we find a negative direct effect of the DC plan on turnover relative to the DB plan, which underscores the multi-dimensional difference between these plans.
Author: Gopi Shah Goda Publisher: ISBN: Category : Languages : en Pages : 51
Book Description
This paper provides new insights into the effect of the widespread transition from defined benefit (DB) to defined contribution (DC) pension plans on employee mobility. Pension plans may affect employee mobility both through an “incentive effect,” where the bundle of benefit characteristics, such as vesting rules, relative liquidity and the risk/return tradeoff affect turnover directly, and a “selection effect,” where employees with different underlying mobility tendencies select into firms with different types of pension plans. In this paper, we quantify the role of selection by exploiting a natural experiment at a single employer in which an employee's probability of transitioning from a DB to a DC plan was exogenously affected by the default provisions of the transition. Using a differences-in-regression-discontinuities (DRD) estimator, we find evidence that employees with higher mobility tendencies self-select into the DC plan. Furthermore, we find a negative direct effect of DC enrollment on turnover that takes place within one year. Our results suggest that selection likely contributes to an observed positive relationship between the transition from DB to DC plans and employee mobility in settings where employees choose plans or employers.
Author: John Andrew Turner Publisher: ISBN: Category : Occupational mobility Languages : en Pages : 304
Book Description
Analyses pension benefit losses for job changers and laid off workers. Proposes policies designed to enhance pension portability. Includes chapters on lump sum distributions prior to retirement.
Author: Izzet Sahin Publisher: Praeger ISBN: Category : Business & Economics Languages : en Pages : 144
Book Description
The author presents a new approach to the study of private pensions in the united States and Canada. Whereas traditional approaches focus on the firm as the key to analyzing pension obligations and the impact of pensions on economic processes, Sahin takes the individual worker as the unit of analysis. The evolution of costs and benefits are then determined over the work life, which may include several jobs and membership in different pension plans. The Worklife Report Sahin presents a new approach to the study of private pensions in the United States and Canada. While traditional approaches focus on the firm as the key to analyzing pension obligations and the impact of pensions on economic processes, Sahin takes the individual worker as the unit of analysis. The evolution of costs and benefits are then determined over the work life, which may include several jobs and membership in different pension plans. Because the conventional approaches generally assume no job mobility and a single employer, Sahin demonstrates, they fail to adequately reflect the actual status of individual pension benefits, the effects of job mobility, and the unequal distribution of pension benefits to individuals with comparable working lives and wage profiles. To gain a clear view of private pensions and their impact on workers, employers, and public policy, Sahin shows that an analytical model that takes into account the interaction of job mobility, inflation, vesting rules, pension coverage, and portability must be employed. By taking the worker as the unit of analysis and emphasizing the dynamics of pension accumulation, Sahin is able to properly assess pension benefits from the perspective of the individual worker who needs to make rational job decisions, from the point of view of the employer concerned with the efficient and economical use of human resources, and from the public policy standpoint where the issue is the overall effectiveness of the private pension system. A pioneering contribution to the study of pension benefits, this volume will be of significant value to employee benefit specialists, policymakers, actuaries, and financial advisors.
Author: U.S. Department of Labor Publisher: GPO FCIC ISBN: 9781612210742 Category : Languages : en Pages : 44
Book Description
Helps you understand your employer's retirement savings plan, know what information you should review periodically and where to go for help with questions. Explains when and how you can receive retirement benefits, the responsibilities of those who manage
Author: United States. President's Committee on Corporate Pension Funds and Other Private Retirement and Welfare Programs Publisher: ISBN: Category : Government publications Languages : en Pages : 152
Author: Colleen N. Flaherty Manchester
Author: Colleen N. Flaherty Manchester
Author: Gopi Shah Goda
Author: Gopi Shah Goda
Author: United States. Bureau of Labor Statistics
Author: Evan Keith Rowe
Author: Gopi Shah Goda
Author: John Andrew Turner
Author: Izzet Sahin
Author: U.S. Department of Labor
Author: United States. President's Committee on Corporate Pension Funds and Other Private Retirement and Welfare Programs