Center for Retirement Research
at Boston College
140 Commonwealth Avenue
Chestnut Hill, MA 02467
NBER Working Papers and Publications
|April 2015||COLA Cuts in State-Local Pensions|
with Alicia H. Munnell, Mark Cafarelli
in The Impact of Reforms of State Retirement Plans, Robert L. Clark and Joseph P. Newhouse, organizers
|October 2012||Public Plans and Short-Term Employees|
with Alicia Munnell, Joshua Hurwitz, Laura Quinby: w18448
Public sector defined benefit pension plans are based on final earnings. As such, these plans are back-loaded; those with long careers receive substantial benefits and those who leave early receive little. The analysis consists of three parts. The first section discusses the design of state and local defined benefit plans, documents the extent to which traditional public sector final earnings plans are back-loaded, and explores the extent to which the incentives may reflect the preferences of employers. The second section shows how participation in final earnings plans affects the lifetime resources of state and local workers of various tenures compared to private sector workers. The third section presents plan-level data on the flows of participants out of the plan by age and tenure and e...
|October 2010||Public Pension Funding in Practice|
with Alicia H. Munnell, Laura Quinby: w16442
Public pension funding has recently become a front-burner policy issue in the wake of the financial crisis and given the pending retirement of large numbers of baby boomers. This paper examines the current funding of state and local pensions using a sample of 126 plans, estimating an aggregate funded ratio in 2009 of 78 percent. Projections for 2010-2013 suggest that some continued deterioration is likely. Funded status can vary significantly among plans, so the paper explores the influence of four types of factors: funding discipline, plan governance, plan characteristics, and the fiscal situation of the state. Judging the adequacy of funding requires more than just a snapshot of assets and liabilities, so the paper examines how well plans are meeting their Annual Required Contribution an...
Published: Munnell, Alicia H. & Aubry, Jean-Pierre & Quinby, Laura, 2011. "Public pension funding in practice," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(02), pages 247-268, April. citation courtesy of