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Pension Plan Choice among University Faculty

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Author Info

  • Robert L. Clark

    ()
    (North Carolina State University)

  • Linda S. Ghent

    ()
    (Eastern Illinois University)

  • Ann A. McDermed

    ()
    (North Carolina State University)

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    Abstract

    A pension plan is an important component of lifetime earnings, and thus the decision between a defined benefit pension and a defined contribution pension is an important one. This study uses data from annual faculty censuses of the University of North Carolina system, where new hires are given a choice between a state defined benefit pension and a defined contribution plan. Newly hired faculty members who are older, female, and nonwhite are found to be more likely to choose the defined benefit plan. Some differences across university Carnegie classification are also seen. In addition, a declining trend in defined benefit participation is shown.

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    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 72 (2006)
    Issue (Month): 3 (January)
    Pages: 560-577

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    Handle: RePEc:sej:ancoec:v:72:3:y:2006:p:560-577

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    Web page: http://www.southerneconomic.org/
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    Cited by:
    1. Jeffrey R. Brown & Scott J. Weisbenner, 2007. "Who Chooses Defined Contribution Plans?," NBER Working Papers 12842, National Bureau of Economic Research, Inc.
    2. Robert Clark & Linda Ghent, 2010. "Strategic HR Management with an Aging Workforce: Using Demographic Models to Determine Optimal Employment Policies," Population Research and Policy Review, Springer, vol. 29(1), pages 65-80, February.

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