Does Pension Plan Structure Affect Turnover Patterns?

Lewis, Gregory B.; Stoycheva, Rayna

doi:10.1093/jopart/muw035

Cited by 20 publications

(20 citation statements)

References 34 publications

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“…Yet, younger American workers rather envision multiple careers over their lifespan, which augurs for greater pension portability (Cong et al ). Conversely, public managers may well recognize this shift in preferences, but fear that adoption of the DC model will foster greater turnover (Lewis and Stoycheva ). Such turnover carries organizational cost.…”

Section: Discussionmentioning

confidence: 99%

Path Dependence in Pension Policy: The Case of Florida Local Governments

Cong¹,

Neshkova²,

Frank³

2017

Public Budgeting & Finance

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Policymakers face significant liabilities with traditional defined benefit (DB) plans in the government. Unlike defined contribution (DC) plans, the fiscal risks under DB plans are borne by the plan sponsors, that is, state and local governments, and ultimately taxpayers. The Great Recession heightened pension solvency concerns in many jurisdictions, necessitating a reconsideration of their retirement systems. Drawing on Florida municipalities’ plans from 2006 to 2012, we develop an index of pension change and track its evolution. Findings reveal a preponderance of incremental change and suggest the lack of significant change may be a function of high financial costs and status quo bias.

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Section: Discussionmentioning

confidence: 99%

Path Dependence in Pension Policy: The Case of Florida Local Governments

Cong¹,

Neshkova²,

Frank³

2017

Public Budgeting & Finance

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“…Attenuated public sector motivation among younger workers may also shorten tenure (Chetkovich, 2003; Ertas, 2016). The upshot is that younger government employees may embrace the portability associated with the DC model and bring greater turnover to the public workplace as a result (Lewis & Stoycheva, 2016).…”

Section: Retirement Planning With Changing Workforce–employer Relatiomentioning

confidence: 99%

Retirement Planning Decisions: Choices Between Defined Benefit and Defined Contribution Plans

Ali

Frank

2018

The American Review of Public Administration

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As states move toward offering defined contribution retirement plans as an alternative or addition to traditional defined benefit pensions, they need to consider the preferences and long-term consequences for different groups of employees. This study looks at which plan employees choose when given the option of either a defined contribution or defined benefit plan. The strongest driver of that choice is education level where the most educated prefer defined contribution plans and the least educated stay in defined benefit plans. A unique contribution of this study is that we include region of origin as a study and determine that cultural differences influence plan selection. The study also explores the role of sex, age, and tenure. Challenging other studies on financial planning, these findings indicate that sex and age are not significant factors. This research was conducted using data from more than 4,000 employees from Florida International University and an interview with HR professionals. By understanding retirement preferences in a more nuanced way, we can better craft our approaches to retirement security and financial literacy training in public sector organizations.

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“…In particular, when careful attention is paid to the relationship between plan type, tenure, and job mobility, there is evidence of higher rates of job exit for employees in DC plans relative to those in DB plans among employees with five to ten years of tenure [4]. Evidence from US federal employees also shows higher mobility among mid-career employees after the federal government moved from an all-DB retirement plan to a hybrid plan, consisting of a new DC plan and a lower-payout DB plan [5]. Finding that differences in mobility emerge mid-career suggests that plan incentives may affect mobility.…”

Section: Discussion Of Pros and Cons Evidence Of Job Mobility And Plamentioning

confidence: 99%

Retirement plan type and worker mobility

Manchester¹

2019

izawol

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Does Pension Plan Structure Affect Turnover Patterns?

Cited by 20 publications

References 34 publications

Path Dependence in Pension Policy: The Case of Florida Local Governments

Path Dependence in Pension Policy: The Case of Florida Local Governments

Retirement Planning Decisions: Choices Between Defined Benefit and Defined Contribution Plans

Retirement plan type and worker mobility

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