The Effects of Social Security Reform on Private Pensions
SIEPR Policy Research Paper No. 00-17
43 Pages Posted: 14 Feb 2001
Date Written: December 2000
Among the far-reaching effects of Social Security reform on the rest of the economy is the impact on private pensions. This paper develops a model of pension plan design that incorporates heterogeneity in tastes for saving and sorting of workers in the labor market. The model is used to analyze the likely effects of a range of Social Security reform proposals on the design of employer-provided pensions. Several reform options are shown to change the relative benefits received by high- and low-income workers and to affect the ability of pension plan sponsors to comply with nondiscrimination rules for the distribution of pension contributions and benefits.
JEL Classification: H55, J32
Suggested Citation: Suggested Citation