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Retirement Incentives Contained in Occupational Pension Plans and Their Implications for the Mandatory Retirement Debate

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Author Info

  • James E. Pesando
  • Morley Gunderson

Abstract

The authors find, for the most prevalent type of pension plan in Canada, that plan provisions are not a close substitute for mandatory retirement. Special retirement provis ions, which have a strong potential to discourage work, typically do not come into play before age sixty and are far from universal. The p ostponed retirement provision that has the greatest potential to disc ourage work beyond age sixty-five has been deemed an unacceptable sub stitute for mandatory retirement in those jurisdictions (Quebec, Mani toba, Government of Canada) which have banned mandatory retirement.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 21 (1988)
Issue (Month): 2 (May)
Pages: 244-64

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Handle: RePEc:cje:issued:v:21:y:1988:i:2:p:244-64

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Michael Baker & Jonathan Gruber & Kevin Milligan, 2003. "The retirement incentive effects of Canada's Income Security programs," Canadian Journal of Economics, Canadian Economics Association, vol. 36(2), pages 261-290, May.
  2. Martin Hering & Thomas R. Klassen, 2010. "Strengthening Fairness and Funding in the Canada Pension Plan: Is Raising the Retirement Age an Option?," Social and Economic Dimensions of an Aging Population Research Papers 263, McMaster University.
  3. Morley Gunderson & James E. Pesando, 1988. "The Case for Allowing Mandatory Retirement," Canadian Public Policy, University of Toronto Press, vol. 14(1), pages 32-39, March.
  4. James E. Pesando, 2008. "Risky Assumptions: A closer Look at the Bearing of Investment Risk in Defined-Benefit Pension Plans," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 266, June.

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