What Kind of Commitment Does a Final-Earnings Pension Plan Elicit?

26 Pages Posted: 28 May 2013

See all articles by Andrew A. Luchak

Andrew A. Luchak

University of Alberta - Department of Strategic Management and Organization

Ian R. Gellatly

University of Alberta - Department of Strategic Management and Organization

Multiple version iconThere are 2 versions of this paper

Date Written: May 1, 2000

Abstract

In a sample of 427 employees in a large, unionized public utility company, we examined the incentive effects of a final-earnings pension plan on employees’ commitment to the organization. Two types of organizational commitment, affective and continuance commitment were measured using scales described by Meyer and Allen (1997). We found evidence that higher accruals under the pension plan increased continuance commitment but reduced affective commitment. Organizational commitment was also found to vary by job satisfaction, specific training, seniority, wage premia, and the perceived effectiveness of alternative dispute resolution methods. Implications for pension theory, research, and policy are discussed.

Suggested Citation

Luchak, Andrew A. and Gellatly, Ian R., What Kind of Commitment Does a Final-Earnings Pension Plan Elicit? (May 1, 2000). Relations Industrielles/Industrial Relations, Vol. 56, No. 2, 2001 ; University of Alberta School of Business Research Paper No. 2013-458. Available at SSRN: https://ssrn.com/abstract=2270803

Andrew A. Luchak (Contact Author)

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

Ian R. Gellatly

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

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