Lessons from the Efforts to Manage the Shift Away from Defined Benefit Plans to Defined Contribution Plans in Australia, the United Kingdom, and the United States

2014 ◽  
Author(s):  
Elizabeth F. Brown
Keyword(s):  
United States ◽  
United Kingdom ◽  
The United States ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Defined Contribution Plans ◽  
The United Kingdom ◽  
Defined Benefit Plans

A Comprehensive Review of the Evolution of Accounting Standards for State and Local Government Pensions and Other Postemployment Benefits in The United States

2019 ◽  
Vol 46 (1) ◽  
pp. 57-77
Author(s):  
Dale L. Flesher ◽  
Craig Foltin ◽  
Gary John Previts ◽  
Mary S. Stone
Keyword(s):  
United States ◽  
Local Government ◽  
Accounting Standards ◽  
The United States ◽  
Pension Funds ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Defined Contribution Plans ◽  
State And Local Government ◽  
State And Local

ABSTRACT Both the business media and the popular press have emphasized the underfunding problems associated with pension funds that are set aside for state and local government workers, a group that also includes teachers and professors at state-affiliated colleges and universities. The realization that pension funds are typically underfunded stems from the fact that the accounting standards associated with state and local government employee pension funds have led to greater transparency since 2011. This paper examines, explains, and interprets the historical development over the last 70 years of accounting standards for state and local government pension funds in the United States. Changing accounting standards, along with economic and social change, have led to consequences such as employers transforming their pension programs to avoid substantial costs and significant liabilities, for example by changing from defined benefit to defined contribution plans.

Pension type, tenure, and job mobility

2010 ◽  
Vol 9 (4) ◽  
pp. 609-625 ◽  
Author(s):  
KELLY HAVERSTICK ◽  
ALICIA H. MUNNELL ◽  
GEOFFREY SANZENBACHER ◽  
MAURICIO SOTO
Keyword(s):  
Private Sector ◽  
Panel Study ◽  
The United States ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Job Tenure ◽  
Defined Contribution Plans ◽  
Defined Benefit Plans ◽  
Dramatic Shift ◽  
Using Data

AbstractOver the last 25 years, the United States has seen a dramatic shift in the private sector away from defined benefit plans and towards defined contribution plans. While commentators constantly cite an increase in labor mobility as a major reason for the shift in the private sector from defined benefit to defined contribution plans, researchers to date have not been able to document any difference in mobility by pension type. This study argues that the inability to find such a relationship stems from ignoring the important role of job tenure. Using data from the Survey of Income and Program Participation (SIPP) and the Panel Study of Income Dynamics (PSID), the results of duration analyses that include the interaction of job tenure and pension type reveal that workers with between five and ten years of tenure at a firm are 23% more likely to leave a job with a defined contribution plan than with a defined benefit plan. This difference is consistent with differences in the timing of benefit level entitlement between the two types of plans.

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