https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
  • Resources
    • Back
    • Resources
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
  • Resources
    • Back
    • Webinars
    • White Papers
    • Events
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • Magazine
    • Back
    • Digital Editions
    • Reprints & Reuse
    • Subscribe to GovPro
    • Manage GovPro Subscription
    • Advertise
  • About Us
    • Back
    • About Us
    • Contact Us
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
acc.com

Administration


Report: Government pensions are employees’ top retirement choice

Report: Government pensions are employees’ top retirement choice

Public sector employees prefer defined benefit pensions over other forms of retirement plans, according to a new study from the National Institute on Retirement Security.
  • Written by American City & County Administrator
  • 17th October 2011

Public sector employees prefer defined benefit (DB) pensions over other forms of retirement plans, such as 401(k)-type defined contribution (DC) individual accounts, according to a new study from the Washington-based National Institute on Retirement Security (NIRS). The study, which analyzed seven state retirement systems that offer a choice between DB and DC plans, found that 75 to 98 percent of new employees in those systems preferred DB plans, while 2 to 25 percent choose DC plans.

The new study, “Decisions, Decisions: Retirement Plan Choices for Public Employees and Employers,” which was released Sept. 29,
analyzed the retirement plans of the Colorado Public Employees’ Retirement Association, Florida Retirement System, Montana Public Employee Retirement Administration, North Dakota Public Employees Retirement System, Ohio Public Employees Retirement System, State Teachers Retirement System of Ohio, and South Carolina Retirement Systems. The report includes a breakdown of new hire elections for each plan.

Other findings from the report include:

• DB pensions are more cost efficient than DC accounts because of higher investment returns and longevity risk pooling.
• DC accounts lack supplemental benefits, such as death and disability protection. They still can be provided, but that requires extra contributions outside the DC plan, which are not deposited into the members’ accounts.
• When states shift from DB pensions to DC accounts, such a shift does not close funding shortfalls and can increase retirement costs.
• A “hybrid” plan for new employees in Utah provides a unique case study in that it has capped the pension funding risk to the employer and shifted risk to employees.

“The research is clear that public employees highly value their pension benefits and will choose this retirement plan over an individual DC account,” Ilana Boivie, report co-author and NIRS economist, said in a statement. “These findings are not surprising and are consistent with NIRS’ recent opinion polling earlier that found 83 percent of Americans believe those with pensions are more likely to have a secure retirement.”

Boivie also said employers believe that pensions remain the most cost-effective way to fund a retirement benefit, and that switching from pensions to individual accounts can drive up costs for taxpayers. “These economic facts, coupled with strong employee preferences for pensions, suggests that public employers are unlikely to mimic the trend away from pensions that has occurred in the private sector,” she said.

Download or read more about “Decisions, Decisions.”

Related Stories

  • Reaping the benefits
  • The battle over government pensions
  • Governments seek to limit public sector unions
Tags: Administration

Related


  • Cleveland launches program to create circular rconomy
    The City of Cleveland and Cleveland Neighborhood Progress announced the launch of Circular Cleveland, a two-year initiative to develop and implement circular economy strategies and programs in Cleveland. Inspired by similar models in cities around the world, the circular economy is a comprehensive approach to provide community-wide benefits by designing waste and pollution out of our economic system, keeping […]
  • Three ways the public sector can minimize remote workforce PC refresh headaches
    Public sector IT organizations must find ways and tools to automate and streamline processes while minimizing hands-on IT involvement in setting up and migrating PCs
  • Reno-Talkspace partnership offers free mental services to residents
    Reno, Nev., has partnered with tele-mental health services provider Talkspace to provide residents free access to virtual mental health counseling. “The reality is that therapy, that services are accessible to anyone who needs them at this point, throughout the city of Reno, whether it’s a little bit of stress that you’re experiencing or perhaps more […]
  • Biden cabinet picks poised to bring municipal experience to national level
    If confirmed by the U.S. Senate, President Joe Biden’s picks for Secretary of Labor and Secretary of Transportation — Boston Mayor Marty Walsh and former South Bend, Ind., Mayor Pete Buttigieg, respectively — will bring municipal leadership-borne experience to the president’s cabinet. Both Walsh and Buttigieg had accomplishments while serving in their mayoral positions that […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Six cities share $745,000 in grants for sustainability projects
  • How the City of Fullerton navigated adding candidates to ballots remotely
  • Biden’s relief plan includes $350 billion for local and state government
  • Designing city and county buildings for safety and accessibility

White papers


Discover How Public Sector Officials are Monitoring and Managing Overtime in This New White Paper

22nd February 2021

How to Assemble a Successful Government Grant Proposal

5th February 2021

The Rise of Procurement’s Next Normal

5th February 2021
view all

Events


PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

Twitter


AmerCityCounty

American City & County’s 2020 Exemplary Public Servant of the Year Award dlvr.it/RtZbX2

26th February 2021
AmerCityCounty

American City & County’s 2020 Crown Communities Awards dlvr.it/RtZbVz

26th February 2021
AmerCityCounty

2020 Crown Communities Awards winner: Rock Hill, S.C.’s My Ride dlvr.it/RtZSFp

26th February 2021
AmerCityCounty

Three communities hosting Augmented Reality Developer Challenge competitions dlvr.it/RtZ94D

26th February 2021
AmerCityCounty

Using data to improve emergency response resources dlvr.it/RtVSc0

25th February 2021
AmerCityCounty

How small cities are tackling lead service line replacement dlvr.it/RtV9G8

25th February 2021
AmerCityCounty

COVID-19 and pivoting into a new year: It may be 2021, but did we really leave 2020? dlvr.it/RtQRcr

24th February 2021
AmerCityCounty

Six tips for making sure your dispatch is doing all the right moves dlvr.it/RtQBvl

24th February 2021

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X