Indiana University SPEA Edward J. Bloustein School of Planning and Public Policy University of Pennsylvania AIR American University

Panel Paper: Pension Structure and Employee Turnover: Evidence from a Large Public Pension System

Friday, November 13, 2015 : 12:00 AM
Flamingo (Hyatt Regency Miami)

*Names in bold indicate Presenter

Kristian Holden, American Institutes for Research
Public pension systems in many U.S. states face large funding shortfalls. Movement toward defined contribution (DC) pension structures may reduce the likelihood of future shortfalls. We address some limitations of the existing literature by studying public-sector employees who are enrolled in either a defined benefit (DB) plan or hybrid DB-DC plan, and who at some points have been able to choose between these plans. We find little evidence that the introduction of the hybrid plan increased employee turnover and that turnover is significantly lower among those who transferred from the DB plan to the hybrid plan.