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Employer Pension Contributions and 401(k) Plans: A Note
Author(s) -
Wei Sun Teresa Ghilarducci,
Nyce Steve
Publication year - 2004
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/j.0019-8676.2004.00339.x
Subject(s) - pension , internal revenue , pension plan , revenue , plan (archaeology) , service (business) , labour economics , business , collective bargaining , economics , finance , actuarial science , marketing , archaeology , history
We investigate the pension choices of over 800 firms between 1988 and 1996. Using the data on pension plan finances from the Internal Revenue Service (IRS) Form 5500, required annually from firms sponsoring plans, and on firm finances from Compustat, we find support that a 10 percent increase in the use of 401(k) plans reduces pension costs per worker by 1.8 to 2.0 percent. Collective bargaining helps to mitigate the decline in employer costs.