What is a Public Sector Pension Worth?

19 Pages Posted: 8 Oct 2009

See all articles by Richard F. Disney

Richard F. Disney

University of Nottingham; Institute for Fiscal Studies (IFS); Axia Economics

Carl Emmerson

Institute for Fiscal Studies (IFS)

Gemma Tetlow

Institute for Fiscal Studies (IFS)

Date Written: 0000

Abstract

We measure accruals in defined benefit (DB) pension plans for public and private sector workers in Britain, using typical differences in scheme rules and sector-specific lifetime age-wage profiles by sex and educational group. We show not just that coverage by DB pension plans is greater in the public sector but that median pension accruals as a percentage of salary are more than 6% higher among DB-covered public sector workers than covered private sector workers. This is largely driven by earlier normal pension (retirement) ages but also by differences in earnings profiles across the sectors.

Suggested Citation

Disney, Richard F. and Emmerson, Carl and Tetlow, Gemma, What is a Public Sector Pension Worth? (0000). The Economic Journal, Vol. 119, Issue 541, pp. F517-F535, November 2009. Available at SSRN: https://ssrn.com/abstract=1484216 or http://dx.doi.org/10.1111/j.1468-0297.2009.02320.x

Richard F. Disney (Contact Author)

University of Nottingham ( email )

School of Economics
Nottingham NG7 2RD
United Kingdom
+44 115 951 5620 (Phone)
+44 115 951 4159 (Fax)

Institute for Fiscal Studies (IFS)

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

Axia Economics ( email )

38 Concanon Road
London SW2 5TA
United Kingdom

Carl Emmerson

Institute for Fiscal Studies (IFS) ( email )

London, WC1E 7AE
United Kingdom
020 7291 4800 (Phone)
020 7323 4780 (Fax)

Gemma Tetlow

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

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