4.26 Pension Benefits & Pension Plans

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This section reviews the pension coverage information from recent surveys and the pension plan data collections. For details on income from Social Security/Railroad Retirement or disability insurance, see the “Social Security & Disability” section of this guide.

Pension Benefits

The 1993–2001 surveys collected information about pension benefits actually received as income by the respondent and her husband or partner.  Pension sources included a personal plan (e.g., IRA/401k), a private employer, the military, the federal government, a state or local government, a union, or another source.

Pension Plans

The 1991-2001 interviews included the collection of extensive information on employer pension plans for which the respondent and her spouse were eligible and participating.

1991 survey. The 1991 survey included questions on actual pension coverage and vesting rights of those respondents who indicated, during administration of the fringe benefit series, that a retirement pension program was available from their current or last employer.  Respondents enrolled in an employer’s pension program were asked for information on (1) the method used to determine their benefit amount, i.e., a defined benefit formula based on years of service/salary, the amount accumulated in their pension account, or both, and (2) whether they had worked under the plan long enough to be vested or entitled to some pension benefits.  Those not vested were asked for information on the number of additional years needed until such rights would be obtained, what would happen to the money accumulated in each retirement account should the respondent leave her job, the dollar amount in the account now, and the amount of money that would be received in a partial or full cash settlement.

1995-2001 surveys. Information on employer-provided pension plans was collected in 1995–2001.  The respondent provided information about the eligibility of herself and her spouse for current pensions from current employers.  Details were gathered on participation in both defined benefit and defined contribution pension plans offered by an employer.  Data were collected from those participating in a defined benefit plan on the number of years included in the plan, the amount of money contributed, age at which full or reduced benefits would be/were being received, and expected/actual benefit amounts at retirement.  For those with defined contribution plans, information included the type(s) of account plan (e.g., thrift or savings, 401k, 403b, Supplemental Retirement Account, profit sharing, stock purchase), amounts both the employer and respondent contributed, total dollar amount of contributions ever made, and how the dollars were invested.  All respondents who provided pension plan information were asked whether an early retirement option with incentives had been offered and, if so, the type(s) (e.g., extra service credit, increased benefits, early benefits, lump sum settlement, etc.).

The following example illustrates the implications of this change.  Consider a respondent with four pensions, two from a current employer listed on line 2 in the employer roster, and two from a past employer listed on line 5 of the employer roster.  In 1995, the respondent would start with question RSP‑108‑ARR‑02 and answer questions about the first plan for employer #02.  She would then return to the same question, now numbered RSP‑208‑ARR‑02, and provide information about the second plan with that employer.  This pattern would repeat for plans three and four.  In 1997, the respondent would answer a series of questions, beginning with RSP‑102‑ARR‑01, about her first pension plan.  She would next answer the same series of questions, now numbered RSP‑102‑ARR‑02, about her second plan, and so on until all plans are reported.  Researchers can then look at the R7PENS variables to determine which plan number a given plan is for a specific employer.  Finally, researchers can use the R7EMPS variables to determine which employer matches with a given plan.  Note that, in the example, the plans are listed by employer, but they would not necessarily be listed in that order.

Table 4.26.1 Pension Plan Rostering Systems

Related Variables: The “Geographic Mobility” section of the 1983 questionnaire collected information on the effect of the respondent’s move to her current residence on (1) the job seniority rights of the respondent or spouse and (2) the retirement plans of the respondent or spouse.  Coding categories delineated whether the respondent/spouse had lost some, none, or all seniority or pension/retirement rights or whether she or he had no such rights before the move.  The fringe benefit series regularly includes “retirement pension program” as one of the benefits made available by a current or past employer.  Availability should not be confused with actual coverage under a pension plan or receipt of pension benefits.

Survey Instruments: The “Income and Assets” section of the questionnaires contains the pension income questions.  The “Current Labor Force Status and Work History” section of the 1991 questionnaire and the “Respondent Employer Supplement,” “Husband Employer Supplement,” and “Income and Assets” sections of the 1995–2001 questionnaires contain the pension plan questions.

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