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dc.contributor.authorBeshears, John Leonard
dc.contributor.authorChoi, James J.
dc.contributor.authorLaibson, David I.
dc.contributor.authorMadrian, Brigitte
dc.date.accessioned2012-09-27T18:14:30Z
dc.date.issued2011
dc.identifier.citationBeshears, John, James J. Choi, David Laibson, and Brigitte C. Madrian. 2011. Behavioral Economics Perspective on Public Sector Pension Plans. Journal of Pension Economics and Finance 10(2): 315-336.en_US
dc.identifier.issn1474-7472en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:9647369
dc.description.abstractWe describe the pension plan features of the states and the largest cities and counties in the U.S. Unlike in the private sector, defined benefit (DB) pensions are still the norm in the public sector. However, a few jurisdictions have shifted toward defined contribution (DC) plans as their primary savings plan, and fiscal pressures are likely to generate more movement in this direction. Holding fixed a public employee's work and salary history, we show that DB retirement income replacement ratios vary greatly across jurisdictions. This creates large variation in workers’ need to save for retirement in other accounts. There is also substantial heterogeneity across jurisdictions in the savings generated in primary DC plans because of differences in the level of mandatory employer and employee contributions. One notable difference between public and private sector DC plans is that public sector primary DC plans are characterized by required employee or employer contributions (or both), whereas private sector plans largely feature voluntary employee contributions that are supplemented by an employer match. We conclude by applying lessons from savings behavior in private sector savings plans to the design of public sector plans.en_US
dc.language.isoen_USen_US
dc.publisherCambridge University Pressen_US
dc.relation.isversionofhttp://dx.doi.org/10.1017/S1474747211000114en_US
dash.licenseOAP
dc.subjectretirement economicsen_US
dc.subjectPublic financeen_US
dc.subjectpublic sector pension plansen_US
dc.subjectbehavioral economicsen_US
dc.titleBehavioral Economics Perspective on Public Sector Pension Plansen_US
dc.typeJournal Articleen_US
dc.description.versionVersion of Recorden_US
dc.relation.journalJournal of Pension Economics and Financeen_US
dash.depositing.authorMadrian, Brigitte
dc.date.available2012-09-27T18:14:30Z
dc.identifier.doi10.1017/S1474747211000114*
dash.contributor.affiliatedBeshears, John
dash.contributor.affiliatedMadrian, Brigitte
dash.contributor.affiliatedLaibson, David


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