The Costs of Defined Benefit Pension Plans and Firm Adjustments
| dc.contributor.author | Barnow, Burt S. | |
| dc.contributor.author | Ehrenberg, Ronald G. | |
| dc.date.accessioned | 2020-11-17T17:14:38Z | |
| dc.date.available | 2020-11-17T17:14:38Z | |
| dc.date.issued | 1979-11-01 | |
| dc.description.abstract | [Excerpt] While it is obvious that the costs of term life insurance vary directly with age, it is less obvious how employers' contributions to pension funds, which comprise a major share of nonwage compensation, vary. As such, we focus in this paper on the most common variant of pension plans and demonstrate how an employer's cost of fully funding a plan varies with the age and service characteristics of his work force. This cost, as a percent of annual salary, is seen to increase with employees' ages and, in some cases, years of service. This variation has important implications for the level and shape of life-cycle earnings profiles, for labor turnover, and for the likely impact of pension reform legislation, such as the Employees Retirement Income Security Act of 1974 (ERISA), on the well-being of workers. These implications are discussed in this paper. | |
| dc.description.legacydownloads | Ehrenberg19_The_Costs_of_Defined_Benefit_Plans.pdf: 1378 downloads, before Oct. 1, 2020. | |
| dc.identifier.other | 3212801 | |
| dc.identifier.uri | https://hdl.handle.net/1813/74962 | |
| dc.language.iso | en_US | |
| dc.rights | Required Publisher Statement: © Massachusetts Institute of Technology Press. Reprinted with permission. All rights reserved. | |
| dc.subject | pension funds | |
| dc.subject | workforce | |
| dc.subject | defined benefits | |
| dc.subject | age | |
| dc.subject | length of service | |
| dc.subject | nonwage compensation | |
| dc.title | The Costs of Defined Benefit Pension Plans and Firm Adjustments | |
| dc.type | article | |
| local.authorAffiliation | Barnow, Burt S.: United States Department of Labor | |
| local.authorAffiliation | Ehrenberg, Ronald G.: rge2@cornell.edu Cornell University |
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