NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Pension Reform and Return-to-Work Policies

Maria D. Fitzpatrick

Chapter in NBER book Incentives and Limitations of Employment Policies on Retirement Transitions (2019), Robert L. Clark and Joseph P. Newhouse, organizers
Conference held August 10-11, 2018
Published in October 2019 by Cambridge University Press, Journal of Pension Economics and Finance, vol. 18, special issue 4

For many people, working after beginning retirement benefit collection is a way to enhance financial security by increasing income. Existing research has shown that retirees are sensitive to the Social Security earnings test, which restricts the amount of earnings some beneficiaries can receive. However, little is known about the effects of other types of policies on post-retirement employment. Instead of restricting earnings, many public pension plans restrict the number of hours beneficiaries can work. I use return-to-work rules limiting the number of hours of employment in a state's public pension plan and administrative data on employment and retirement to determine the rules’ effects on retirement decisions and post-retirement labor supply. I find that the increases in the maximum number of hours of post-retirement employment lead to no change in retirement benefit collection and to increases in part-time work among retirees. As such, these policies appear to be binding on the labor supply decisions of some employees. These results are relevant for designing policies aimed at extending work-lives or improving the health of pension systems.

This chapter is not currently available on-line.

You may be able to access the full text of this document elsewhere.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): https://doi.org/10.1017/S1474747218000367

This chapter first appeared as NBER working paper w25299, Pension Reform and Return to Work Policies, Maria D. Fitzpatrick
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us