How Do Firms Respond to State Retirement Plan Mandates?

State and Local Retirement Plans in the United States explains how economic and political events have shaped the development of pension plans in the last century, and it argues that changes in the structure and generosity of these plans will continue to shape policy and funding in the future. It also brings to bear a new rationale to the policies behind public sector pension plans. The authors use the history of how early public pension plans were established, how they matured and how they have grown in generosity to analyse what changes may be expected in years to come. Unique in its scope, this comprehensive history of the development of public sector pension plans in the United States during the twentieth century expands upon current ideas relating to the changing economic environment, the passage and evolution of social security, and the expansion of the public sector.

Decision-making approaches and the propensity to default: Evidence and implications

Worker preferences between defined‐benefit and defined‐contribution pension plans are estimated using a sample of faculty members at North Carolina State University. Newly hired faculty must decide between the state retirement plan (a final pay, defined‐benefit plan) and one of three defined‐contribution plans (TIAA/CREF, VALIC, Lincoln National). This analysis allows the authors to estimate the choice of a pension plan holding constant the place of employment. The study uses both university employment records and a faculty survey to examine the factors that determine the choice of a pension.