Pension Plan Choice in the Public Sector: The Case of Michigan State Employees
AbstractIn 1997, the State of Michigan closed its DB pension plan to new state employees. New employees are automatically enrolled in a 401(k) plan with a mandatory state contribution. Existing employees chose between staying in the DB plan, or transferring the present value of their vested pension benefits to a DC plan. This paper surveys the event and analyzes the choice made by corrections workers, about 25 percent of Michigan public employment. An analysis of the switch to individual accounts may inform Federal estimates of take–up rates in a possible privatization of Social Security.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 57 (2004)
Issue (Month): 2 (June Citation: 57 National Tax Journal 329-39 (June 2004))
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shlomo Benartzi & Richard Thaler, 2007. "Heuristics and Biases in Retirement Savings Behavior," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 81-104, Summer.
- Jeffrey R. Brown & Scott J. Weisbenner, 2009.
"Who Chooses Defined Contribution Plans?,"
in: Social Security Policy in a Changing Environment, pages 131-161
National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).
If references are entirely missing, you can add them using this form.