Defined Contribution Pension Participation and Contributions by Earnings Levels Using Administrative Data

Social Security Bulletin, Vol. 71, No. 2, pp. 67-76, 2011

10 Pages Posted: 12 May 2011 Last revised: 25 Apr 2015

Irena Dushi

U.S. Social Security Administration

Howard Iams

U.S. Social Security Administration

Christopher R. Tamborini

U.S. Social Security Administration

Date Written: May 5, 2011

Abstract

Many observers question how the shift from defined benefit (DB) to defined contribution (DC) retirement plans affects workers with different compensation levels. To advance the empirical basis for understanding pension outcomes, this article estimates DC plan participation and contribution rates in 2006 both by the worker's current earnings and by the annual average of real earnings over the 10-year period 1997–2006. Using earnings data from W-2 tax records linked to data from the Census Bureau's Survey of Income and Program Participation, we find that workers in the lower part of the earnings distribution are less likely to participate in a DC plan, and the contribution rates for those who do participate are lower than those for workers with higher earnings.

Keywords: Measurement error, Earnings levels, Private Retirement Pensions

JEL Classification: C2, J30, J32

Suggested Citation

Dushi, Irena and Iams, Howard and Tamborini, Christopher R., Defined Contribution Pension Participation and Contributions by Earnings Levels Using Administrative Data (May 5, 2011). Social Security Bulletin, Vol. 71, No. 2, pp. 67-76, 2011. Available at SSRN: https://ssrn.com/abstract=1831655

Irena Dushi (Contact Author)

U.S. Social Security Administration ( email )

Washington, DC 20254
United States

Howard Iams

U.S. Social Security Administration ( email )

Washington, DC 20254
United States

Christopher R. Tamborini

U.S. Social Security Administration ( email )

500 E. Street, S.W.
Washington, DC 20254
United States
202.358.6109 (Phone)

HOME PAGE: http://www.ssa.gov/policy/

Paper statistics

Downloads
52
Rank
319,132
Abstract Views
485