22 20 1741 _UMMARY 36 7 CONTENTS 31 33 35 26 65 r _ 34 3O 38 32 29 27 432 3 25 24 2 12 37 14 13 39 28 42 16 4438 18 19 40 21 15 II 9 I0 TABLE I0: CYCLICAL CHANGES IN EMPLOYMENT CHARACTERISTICS Notes TABLETABL 9:E CYCLICAL 7:TABLE UTILIZATION 12: CHANGES CUMULATIVE OIN F VOLUNTARY EMPLOYMENT DISTRIBUTION RETIRMENT AND COVERAGE OFPROGRAIN MS THE TABLE TABLE TABLE8: ii: 6:EMPLOYMENT, TABLE VESTING EMPLOYMENT, 3: AMONG COVERAGE CUMULATIVE AUTHOR'S COVERAGE NONAGRICULTURAL ANDBIOGRAPHY DISTRIBUTION AND FUTURE FUTURE BENEFIT WAGEBENEFIT OFANDENTITLEMENT SALARY ENTITLEMENT WImputed HO BENEF TABLE Respons ITS 2:FRes- OMCUMULATIVE -A EMPLOYE further R DISTRIBUTION PENexplanation SIONS STATEMOF ENT for EMPLOYMENT, the shift COVERAGE in the structure AND VESTINGof the toStatistical TH particular, recession, Eearn COSTS lessOFbenefit Quirks the than THE federal BUSIN $15,000 entitlement ESSgovernment CYCL thanE men. remained appears Thosestrong. earning to haveNeless vhired ertheless, than more$I0,000 workers because areoutside ofless the Analysis Furthermore, May through business and 1983 Economics of and temporary EBRI the personal /employer HHS of EBRIEmployer /sur HHS layoffs vservices) ey pensions pension data Provided during also and supplement havein show Fringe anot retail recession that data undergone Benefits trade. women providesrather happily aare Theinsights financial gaining number reflect thaninto ofpension crisis covered through the the wage tax-sheltered An Between The The theIndustrial nbulk ERISA umb rates er 1979 ofwork lagging ofemployment and Analysis deferred women force 1983, TABLE prices meeting whoin compensation coverage I:expect over the EMPLOYMENT, ERIS recessionary an Alump-sum rose sta extended from nby daCOVERAGE rd2.6 benefits sasectors period. second for million AND plaare of nplan VESTING: By employees pthe added arcontrast, tici in economy pto lieu ation for this assets is ofthe asum, lso typified current ERIEA held the age participated Much Even percent Emplotwenty-five ye though of r of the provided the covered in analysis expansion and Social penover si workers focuses on Security s of agearcoverage eand sixty-five, onconc andtwo 7e0neither ntr was groups percent ated not and, did tproportional in owof finally, ar 43 the dthose percent the labor agricultural lo holding to we force--paralleling of rthe the threxpansion ee vested state -quworkers artersof New fThe or Evidence tabulations benefit on entitlement Vesting in the second at retirement. panel of tableA Igre have atertraditionally percentage been of younger used to SUMMARY OFAMONG THE ER PRIVAT ISA EWORKNONAGRI FORCE CULTURAL BY INDUSTWAG RY,E AND MAY SALARY 1979 AND WORKMA ERS Y 1983 1 This testimony WORKERS BEFORE ERISA BEFORE AND presents WORK AND THEAND AFTER FOR ERISA CAFTER new E THE BY WORK information THE INDUSTRY, RECESSION, FORCE RECESSION, BYonMAY MAY AGEthe MAY 19 AND 1983 7distribution 9 1983 SECTOR, AND AND AND MAY MAY MAY MAY 1983 197and 919 1983 79the economics T-29 BYIR EMPLOYMENT, TEARNINGS AABLE AND 4:SPOUSAL a THE FOR COVERAGE ST NONAGRICULTURAL IR ATUS A PARTICIPATION AND OF COVER VESTING AGEWAGE BY AND BY EARNINGS AND EARNINGS VESTING SALARY aaAMONG WORKERS DISTRIBUTION BY EARNINGS FOR NONAGRICULTURAL BY AGE AND TYPE OF PROGRAM, MAY 1983 of employer-provided FOR THE ERISA FOR WORK NONAGRICULTURAL pensions FORCE, to MAYhelp 19 WAGE 79 inAND AND theMAY SALARY evaluation 1983 WORKERS IN 1983 of the DOLLARS current system (Figures include imputations for missing data) coverage l/ Both the equation 1979 andandWOMEN the ANDthe THE 1983 ANDcoverage ERISA surveys MEN, WORK MAYrate were 19 FORCE, 79 may supplements ANDMAY MAY lie1983 1983 in tothe the distribution ongoing Currentof across-the-board labor force expansion, wage cuts. coverage In and May vesting 1983, those rateslaid-off both declined workers regardless were either of likely fairness Committee's of comparable entitlement workers and the local toCivil increased of bework to co desire in the vService ered that force. greater pension byto by suffered a gather Retirement hefty numbers a system pension 1.8 by information than neglected Social plan million System. ever andSecurity. employees. before. to in more Although better earlier likely Among The specific inform In studies. topay-as-you-go other those haveCongress recessionary awords, women In higher addition, and meeting despite Social Social theanda and by work gr number byewppension the rivate, force conside of self-employed. total using coverage rstate ably vested the and asrates imputed local fuworkers llof -tigovernment mover data, e rises em7pl 0compared opercent. yment to plans 30.8 became tocontinued Employment million an increase moreto orpand rgrow. eva 76oflcoverage percent ent. just Accumulated over Iof nlosses I.I all salary of previous benefits employment the increases, inc earning EBRI ocausing me dist work less rprobably the ibuti onWAGE coverage than onthis AND most and $25,000 topic.3 SALARY rate pro would vide as /to WORKERS, well. edge not. mor Thee off first bMAr AThese Yoad- from priori, 1983 based group roughly 75 percent growth coconsists veequivalent ragein in than May pension of 19the all 79 workers anticipate lump-sum cash outs. Although the expectation of lump-sum analyze pension coverage. They show that coverage and vesting rates generally Percent Vested of Covered of STATEMENT fringe benefits. Two basic issues are investigated which focus on3 the Average Tenure Covered by Large Company: INDUSTRY Employment EmilyEmployment S. Andrews, Coverage Ph.D. Percent Covered Population SurveyAND(CPS) THE ERISA which WORK is conducted FORCE, MAY monthly 1983 by the Bureau of the fairness and economic Cefficiency overed of Total pensions, Percent the keystone Percent of our employee with Employer Union Contract 500 or More Workers increases in the number1983 of covered Employment 1324 Employment Change Fourth and79-83 entitled St., Coverage Change Coverage S.W. workers. 79-83 Future 19 Future 79 Benefit Benefit 1983 unreported INTROD Census UCTION responses to collect in national the survey. statistics In 1980, on the employment President's and Commission unemployment. on The fairness of the pension system can be analyzed according to information on Security Unfortunately earlier collecting public. variety Security growth ERISA standards industries, of findings replacement system Work-in-progress factors unemployment an was industrial for on militating such buffeted rplan coverage ate.asinsurance, participation, construction analysis Nonetheless, attoward byandthe thebenefit lower does results or, Employee andnot 76 if coverage coverage, equity mining, percent of reemployed, seem Benefit sluggish to are expanded also including of answer reevaluated posted Research pension economic working all bythelarge 2.2 the coverage recession growth Institute atand million questions coverage smaller the inis million coverage holdings The Part were 1co to covered 97v9er72 timing asignificant. ogof nelpercent yemployees based could ethe in mploy 5o1f.3these ees explanation the not on pin erof the cen Led Mbe pMay arov employer ytall expected ide by CPS 1983 o1983 fages construction athe raw for lEBRI lusing pension mmeeting se between fcounts. /the elHHS mves aleimputed fall CERISA th PS wfunds May industry aro gPart epensi ugin 1979 ahparticipation nresponses, were doindi of pension nsand declines alvthis supplement a$522.9 idua rMay y lwo greater coverage 1983. rthe rkof eti billion standards. ersrpr over number ement owvi coverage ere drII eadtes inacc iof npercentage the 1979 oth unts. despite covered egrowth first and Table nonagricultural distribu6tions shows arethat wage founand the d desalary percentage spite the workers. fact of private-sector that The noncorporate many workerworkers s self earning employed withless vested are recipiency rise with higher jumps earnings. at age twenty-five The ratio toof 13 covered percentworkers of covered to employment private rapidly sector Number of Workers (O00's) 1979 Section 1983 401(k)1979 1983 Individual 1979 Retirement 1983 INTRODUCTION Workers Percent Entitled Entitled 4 benefits system: _ (O00's) (000's (000's (000's) and and (O00's (O00's (000's) andand Entitlement Entitlement Employment Washington, Cover D.C.age20024 Benefit Consequently, in addition to information on pension coverage and Women Employment (O00's) Coverage Men (000's) Vesting Distributions Percent Female EARNINGS Employment Coverage Total Vested Benefits Deferred Distri- Compensation Distri- Entitlement Accounts INDUSTRY (years) (000's)% of % of (202) Vested 554-5105 (percof %ent%of ) ofto Future (O00's (per (O00's cen totand ) Lump and less-unionized firms. 1979 Distri- 1983 Distri- 1979 Total1983 Benefit 1979 1983 Pension entitlement, Policy contracted the survey Employ- withprovides ICF,IRAInc. valuable to allocate Distribution data on missing labor among answers force Thosestatus, to the allocated the Institute aboutdistribution whatto(EBRI) happened the 81of provides percent to coverage pension insights of and the coverage vesting women into between within some by earnings, ofthe the the ERISA two issues age surveys. workand offorce sex interest A through who number earn toof a which workers extent and rate resulted some losses prices since of from tendency vesting in rose the 1979 percentage addition toward faster andis nearly shorter than recalculated ofterms, 1.8 wages. 1.3 job million the million tenures, As government using workers a more consequence, coverage new women tofigures the information rates bec ERISA aindexed meare didwork entitled particularly notbenefits on force decline. IRA tofor The expanding workers opportunity Epoints, $815.8 than RISAdata $5wo ,in 0rthese 00 expanded kshow employment 1982 fato oryea that sectors ce analyze ,despite r by dco the ompa lies nall 2.6 orcoverage tthe ed ameet showed million sluggish in sensitivity to the E63. RIS rate coverage 7Aeffect workers pa economy. per for rtici cof ent the rate the pemployer ati for oERISA foWhile recession nreductions me the n. standa work pension no ERISA Byremployed force, dhad 1sof 983 . work pl 3on ath ns to atemployment eforce. workers 5to 70 fe percentage mal percent, business e This lost by Vestin_ excluded vs. as they Voluntary can provide Contributions--A their own coverage comparison through of Keogh total plans. vested Farm benefits employees increases generally from and 27 lesspercent increases than one ofwith out covered age. of four public-sector Around workers two-thirds earning workers, of under allit $5,000 covered diminishes a wage year Number Percent Number Percent WHO BENEFITS FROM EMPLOYER PENSIONS 7 EARNINGS bution Recessionary bution Sectors Distribution AGE demographics and income. Employed) Employed) Covered Employed) Employed) Benefit % %ofofEmployed) Sum Employed) Only EARNINGS bution ment bution Distri- Vesting EliKible forEntitlement Spousal IRA Total 88,214 49,530 28,708 A Middle Income Offered Benefit Utiliza- of Utiliza- 8 Education(I) Are employer-provided Recessionpensions ary Sectodistributed rs farily across Distri- bution Contributes Established THE FULL PICTURE May 1979 DOL/HHS CPS Nonapension griculturalsupplement Wage andresulting Salary Workers from question refusals, less series Over than three-quarters of $20,000 three core aofyear, questions these reinforcing workers from were the the 1983 found conclusion EBRI in/the HHHS financial that pensionpensions supplement sector are and on ain pension purely participation, estriking the Em Changes xpceeded losubcommittees' yer statistical benefits in in pensi contributions view the on401(k) ERISA at of plans on retirement. issues pension the work coverage are culmin distribution make coverage frequentl force ating the and(the ydata rates lump during of regarded last difficult employer that sumrow atraditionally benefits as period in provided to the table interpret cofrom of rners 8benefits. have double to for the neand been each updated ofperhaps digit This nearly oyear) ur May The is Women cycle points. pindustry. erhigher cen 1983 fate ta are conditions. ge after Yet Gainin_ than ofrTypically, osemployer ein that imputations toeach The 5of 7.4manufacturing pensions any predecessor industry perof cwere enthe t, is made the expanded asclosely survey, has th complex for ebeen pmissing remployment opo the linked considered rset tiMoanyresponses ofto o19 fgroups. factors 7the 9men a high DOL mee labor to /SSA tinfluencing This coverage ing jobmarket. CPS finding tenure ERISA pension The and the is thereafter. benefits and Social workers expansion salary Security tend for indicates workers Privatesector private to be coverage that forty-five anonagricultural temporary even during rates during years tumble low-wage theadverse wage ofrecession, atage and age work conditions and salary sixty force older theearners towhom employer costs just are many vested. 5(from to percent. pensions believe maintaining table Vesting This have are to nearly two out of five earning between $20,000 and $24,000 a year. 1983 1983 AGE the workforce? and; Plan tion Workers tion 1983 GOVERNMENT Women are11,905 Gainin8 750 93 93.36% 88.26% 13 Ph.D. University Nonagricultural of Pennsylvani Wage a, andEconomics, Salary Workers 1976 2/EARNINGS In the case of the Nonagricultural bution 1983 survey, Wage the and questions Salary to IRA are Workers (I) Does Spousal your IRA employer $1-4,999 10,014 2,433 358 GOVERNMENT 10.5(O 4 00's)10.59 50.05% 52.5(000's) 4% a a A New Evidence on Vestin K 18 universal. contribute A.B. Barnard to a College, pension or Mathematics, retirement 1964 plan...? (2) Are you included in the middle Employment skipped income questionsbenefit and 36,704 'don't distributed 40,015 know' responses.9 closely 48,477 / in 48,199 accordance 43.1% to the 45.4%income suggest between decline in that 197the 9 pension and coverage 1983coverage tell rate differed. a remained different more story. robust Employment than indicated gains between by the raw the survey. unemployment. pension professional The testimony employer industry Growth coverage Pension benefit and presents services Sectors--With the Funded benefits and system. service new entitlement. which findings plans are sector Consequently, posted the found aare exception on These coverage low tothe be designed coverage any remained broadly fairness rates assessment of mining, industry. virtually of based toand 72of withstand and and efficiency sectors the unchanged can Industrial nearly effectiveness be expected 64 cyclical exhibiting of from percent shifts thethe consistent annual benefit T6) sta henwith da Marydhours sentitlement section 1983 ewith dged worked. EBR401(k) Ithe up /HHSfor toeconomics This Cand 65. PaS system 1IRA peraised pner siutilization of con enthat t.the the suppleme was Th labor proportion e not nrates in t cmarket re self-regulating expa ase (from nde ofin dand employment table th thretirement ee pdre7) opo fat ini shows rtthe ti in ioon nplanning. the time the oof fERISA were $5,000-9,999 decline supplement, difference rates better continued Coverage fall may covered rate to in again was reflect provide unemployment increases conducted once through two protection workers tend factors. during rates federal 15,323 to reach moderate between rel forFirst, aprogr tively sixty-five theaby the ms majority younger 5,74 the buoyant two 7such $20,000 years pension workers of economic asemployees oflevel. Social supplement age. 2,023 aretimes. more The meeting Security proportion surveys likely According ERISA and to is (2) Have the cyclical costs Statement of theFor 1982 recession reduced DURABLE Civilian Private MANU. Sector Employment 8,492 36,458 98,963 (446) 51.02% 56,018 (795)40.32% 84.30,850 74 10.69% 79.84 Civilian employer Employment or union sponsored 98,964 plan? and 51,530(3)...Could 24,095 you receive some Total Total CoveredEmployees Employees Workers a Nonagricultural 20,35588,214 54,363 21,015 Wage49,530 and 31,664 38,058 Salary 28, Workers 28,515 708 20,02739.1% 22,217 42.4% $10,000-14,999 17,827 10,328 5,484 DURABLE MANU. 12.12 11.42 45.18 35.49 77.32% 72.38% benefits the THE COSTS likelihood at retirement? OF Nonagricultural THE Inclusion BUSINESS of future inCY Wage the CLEretirement Written and Salary Record income Workers of the for today's 23 Primary Experience (All (All employees employees Metals && self- self-702 100.00% 100.00% (257) 52.0 56.60% (251) 7% 91.98 31.1 24.35% 7% 89.81 (000 (000's) 's) distribution. Total Vested a 10,884 a 17,824 a 37.9% May percentages. respectively. employment two years 1979 DOL were gains /SSA While even were surstronger changes veyalltowithin with ensure in coverage 4.6 thecomparability. million service-pro appear workers viding to The be added industries. associated coreto questions the ERISA with Table both work the8 to uncertainties, The pension of between participation employer provide 1983 system services EBRIan benefits /HHS standards. using however. important and survey data must manufacturing In also source from consider sum, provides anof while EBRl-sponsored the income could the the success first employer-pro support bringofsurvey information about pension forvided millions ontheplans pension pension on decline entitlement in ofcoverage meeting future system in the work striking. borne Supplemental vestin Evaluating women force gby intworkers othchanges efrom In inc Security ERlMay IS ude 55 and A in 1979, wo to wo retirees rrIncome coverage k57 kerfsopercent. the rcee(SSI). xp alike civilian rand ecting epresfuture through Furthermore, ented luunemployment mpbenefit athe sum gain 1983 dist even receipt ofrAmendments. ibuti 4rate though .1 mi ons between llio reached the nas coverage wo we the rits ll kerMay s. as lowest rate 1979 $15,000-19,999 ERISA of to relative vested theparticipation National difference public-sector Bureau standards between for workers 13,101 Economic coverage were follows set Resear selected ona 9,422 ch, the similar by afollowing 58the age month individual pattern 5,874 premises: economic with worker exp (I) vaesting nsion the change Table 4jobs, providand es their comparat expect ive ation statistof icslump-sum on coverentitlement age and vesprobably ting for reflects men and Primary Metal The s AKKreKate 15.65 FiKures 14.06 64.97 55.17 83.93 85.79 24 Automobiles Less Workers employed) employed) than employees? o 25 Research Associate 8235,285 (190) 19.63 (155)11.87 90.48 7.77 92.56 1983-date Total Employees 88,214 14,972 2,988 1,718 $20,000-24,999 10,283 8,159 5,641 Automobiles 13.02 15.22 72.70 59.21 92.41 88.28 An Industrial Analysis 28 Tot less 3/25 (O00's) alSee tothan Employees 34Sylvester $5,000 years Employee J. Benefit United 11,516 Schieber 4,822 2.50% Research StatesandHouse 39.31% 42.80 Institute Patricia of 1.05% Representatives M. 72, 29.4 465 George, 7 0.54%Retirement 16.49% 13.34 Income retirees. Workers Table less than IIEntitled $5,00 presents 0 6, statistics 790 12.47% 8,018on employment, 5.14% 14,609 coverage 14,199 1.30% and 31.17.%26% future 36.1%benefit extent of unionization, average job tenure and firm size, the decline in pension Table bore to shows future and coverage force. lump--sum entitlement, certain I0 thretirement aThe surveys rate tprovides these number recessionary benefit observed 8funded (and part income of major receipt. covered inothers ofin costs, 1983. industry needs. the conjunction workers The framework ofitsThe groupings this addition structural also nation with for type) grew of aled the appears underpinnings more ask lump-sum by toDepartment over an general about to increase one benefits bepension analysis million remained of approaching in Health increases employment coverage, employees of sound. and these a point fell labor DOL Cov th Foro/er se SSA instance, abetween ge force since anticipatin CPS forattachment 1979 the this pension twogand passage primary grfoup u1983, tusupplement of reemany xpand of sources the pensi ERISA, epart-time ddecline on band yof benefits. 2at .employment was 2the employees amismaller llio seasonally MaynThe1983 and wo using and prro ker coverage por those sadjusted EBRI imputed tian o/ndHHS with ne loss ofadata. rly rate CPS less vested among 1pension .3 of than5.6 the a wwomen. and as in thatfull Wom provided enswing madein by cMemployer onsid ay 1979 erableas pension the emploeconomy yplans. ment surged gaUtilization ins btoward etween of its 19IRAs 7January 9 and for 11980 983 peaking this The third reality. in the panel early Second, of 60's table younger at I88shows percent workers theof may distribution coverage. be more likely of employment, to be employed pension by Nonagricultural NONDURABLE to Future MANU. Benefit Statistical Wage 5,862 Quirks Committee 88,214 321on Ways and 53,932 aMeans 77.08 28,894 72.56 35 less Nonagricultur 35 Opportunities tothan 44 $i0,000 years al Senior Wagein anEBRI 8,576 16.21% A_in88,214 specialist 5 America: 59.77 9.6 onCoverase 49,530 7% employer 48.61and 5.98% pensions Benefit 22,21711.16 Entitlement, and Social less than $i0,000 31.55% 17.27% 8.63% 7.78% $25,000-29,999 5,515 4,365 3,048 NOand less NDURABLE Salary than 25 MANU. Workers Ii 76 55510.6100.00% 8 19.79 39.96 61.14% 32.316,415 9 71.2432.75%2.30 69.10 App The and arel data Salarysupporting Workers the 697analysis 100.00%(1 stem 75) from a56.15% new (84)nationwide 46.21 25.19% survey 45.82 sponsored less 45 to (Washington, than 54 $15,000 Subcommittees years DC: Employee 6,185 on39.46% Social Benefit Security 67.41 Rese30.70% arch and Institute, Select 56.45Revenue 23.82% 1981). Measures 10.96 Human of less less4.3 th thServices aannmillion $15,000 $5,000Security. (HHS). workers 53. 12 between 7.5% Writing 47% 1979 book 39.0 and 5.07on 8%%1982. the status 28.50% The 2.91% number of pension of 26.30% covered bcoverage workers and Conclusion receipt co supplement toverage 38 million for within is 1979workers. athe and complex ERISA 1983Gains work task. comparable force in The vesting appears todual those surpassed effects surprisingly presented of one in unfavorable broad million table in to 8view but total economic of using the 20 participati the crossroads changes. In summary, total oThree nin vesting losses and pension factors future rate inpolicy. employment benefit by foundover While to entI0 and itlement influence tax percentage coverage incentives .2/ coverage stemming points for rates the for from development are private-sector a recessionary provided of aby percent. mThe durable illion second mgoods orBy e group wo contrast, manufacturing men ga consists inedtheentitlement civilian industries of thoseunemployment to workers were futureprimary pen with sion ratemetals sufficient be for nefit May (representing s. 1983, laborat force I0.I the $30,000-49,999 year cevery wEven coverage gro or ycke lical wing ron during sageea the by peak and rn group ing ajob 3vesting .j3recession ust lmay is ess milli eigh far be than across onttoo below pension m$25 non onths weak 6,611 ,aincome 0gri the 00cplans lto ul aaproportion ter tur groups: yea build .alrcontinue By isup wa 5,54 rcgaised ontras in meaningful eof 7 to other avested ndttwo ,cover sawords, four lary pe benefits pension r4,072 predominantly centage years ea the rnbenefits; eprovided rs. ratio later pointsWom ,in of lower- en's M(2) all ay expanding firms who have recently instituted defined contribution plans. THE FULL PICTURE 39 Apparel 9.21 7.90 43.03 34.83 48.93 57.31 Chemicals 25 to 34 years 9701,627 ERISA (104) 30.71 Work Force (109) 21,553 93.17 II.0091.89 less 55 tothan 59 $20,000 year 2,912 59.54% 69.88 52.39% 62.53 44.85% 7.35 less less than than $20,000 $I0,000benefit 70.07% 31.55% entitlement, 58.96% 14.45% The ChanKin49.B77.98% 8%Profile 47.13% of 5.39% Pensions in $50,000 and over 1,615 1,371 1,106 Chemicals Conclusion 13.54 12.12 32.09 22.35 85.41 88.24 42 Nonagricultural 4by /35 the The to 44 Employee next yearssection Wage Benefit of 1,364 this Research Issue 68,252 Institute Brief 43.04 discusses (EBRI), 45,379 14,681 the in effect conjunction 26,569 18.51 of thewith recession the Non less 60agricultural tothan 64 $25,000 years Wage 1,520 76.48% 68,252 69.97 71.98% 42,463 64.88 66.67%20,9345.08 less less than than $25,000 $15,000America, 82.88% 53. forthcoming 75% Fall, 728.91% 6.18% 1984. 70.21% 17.47% Research conducted 68.12% 11.30% using May million imputations in these workers. industries to fill(And, expanded in missing of course, by or 2.4 these incomplete millionfigures employees. data.omitForthe While both additional the years, service the 5.5 employees Because percent economy relatively industry fair steel conditions employer industry, was differed the for and small and one May pension 1979 by changing for of significantly 1983 compositional nearly the and thesystem EBRI highest 1983. most patterns 20 /HHShave part) percentage according since These changes CPSof been and pension survey before faaautomobiles. ctors in to points consistent many industry. World response supplement consist of forWar those public public-sector Coverage must II. In ofwas some variables average be policy (Nationwide conducted considered. industries, losses landmark, workers. on-the-job affecting injust double these the On workers Tables 9less and than I0 present twenty-five statistics years on of employment age are likely and coverage to have for high the turnover ERISA 198 Impu and by attachment to employm 3private-sector 7,tmiddle-income 0ations ethe pe ntrcent econom to gimprove a,ins accrue ab y owe ve workers. employers. had rtehe meaningful the jtsust rtaarns tate us late Table passed The pof dos retirement ted fu utilization 12 intthe ture ocompares when improv November benefi obenefits nly etmof the enfutu treceip 1401(k) s9distribution 82 reif intcyclic pen covered cplans wi osve itohin arag nl eamong rby trough of tecei he and an employment, ppopula twage ve employer marking is stting. ion Not Us workers ingreported thwithin e May a1983 particular EBRI/HHS income 7,924 CPS pen bracket sion s2,158 who upplement, are employed, vest1,105 ed covered benefitsor ca vested n be and Salary Workers 100.00% 66.49% 38.93% TRANSPORTATION 45 and to onSalary 54 cover years aWorkers ge and 1,454 vesting 795100.00% a49.51 62.21% (82) 10,627 72.64 30.630.25 7% 68.98 65 years and older 465 Hearing 51.28 on 45.82 5.46 Employment less than $20,0001983 18,847 EBRI/HHS 70.0722,9 %Current 70 Population 45.98% 30,888 Survey 31,393 31.93%pension37.9% supplement. 25.57%42.3% Notes TRANSPORTAION 10.89 9.57 52.00 40.72 59.74 57.94 43 age (ex-railroads) 25 to 64 only Department age 55 to25 59toyears 64 of only Health and Human 302 Services, 56.90 conducted4,by 723 the U.S. 39.90 Bureau of the less than $30,000 TABLE 5: 85.89% CUMULATIVE DISTRIBUTION 82.86% 78.85% imputed less Cless overedthan thanWorkers responses $30,000 $25,000 for 12,972 items 89. 82. 75% 8815,207 %that were61.47 85.39% not 23,918 % reported 81.25% 22,851 47.48% leads to35.2% an 79.77 40.36% increase % 40.0% in the Al tcoverage industries hethomost ugh severe rates. these alonerecession questi accounted ons since afor ppear World morestraigh War thanII. tfor half ward,the many total survey losses in respondents durables tenure, The million after Total the survey sector sur current the vmissed vested is ey, employees the typically 1982 conducted budget likelihood enumer benefits recessionary who adeficit ting regarded by anticipate of increase the out-of-work has being Bureau astrough, placed areceiving source gradually included ofcovered the the pensions ofCensus aeffect low--wage workers in lump-sum withon ainof union age the who May benefit.) low-benefit the firing providing did 1983, contract, worst notrepresents line. experience Nonetheless, employment, cyclical greater andEventhe a a work digit rates even coverage pension the Theseone force more. unemployment as implan. phand, and rthey ovemen for This pension start changes tMay This s resul had 1979 in receipt their group disappeared tin spensi and response from careers; is oby nMayreferred earnings protec the 1983 in patterns and large tthis iand onto (3) for data country fr increased as between athe those ction the onERISA after certain over ERISA of 1979 the work tthe he sixty-five and work pemployment-related rforce opopulation Great po1983 rti force oin nDepression appear are 1979 oand fwhich more and to is bPand Th cin ro ension oenside ken asalary number pension red. dcover own workers aof ge plan int In foefact ampto atw pea lis eo,the rswa comparable c7o7gmtotal to eplpe ementa abe rnd cent number sensitive rsyaat loafrycvery of ompo thea employed, oto nents se rn young ers business expectin cfand or ocovered vergethe very condi d oby nly or fi tions, old rast vested lump pages ension time: exhworkers. sum ito bitpl i(ng a1n) Lump-sum entitlement among public sector employees is nearly twice as high as Percentage Distribution Within EarninKs Group (ex-railroads) Nonagricultural Public 60 to Sector 64 years Wage 13,072 139 63,83368.13 77.33% 43,7232,834 57.50% 26,143 37.13 19.45% Nonagricultural 5less / Changes than o Distribution $50,000 Chief, in the Wage Statistical 197and 0 and Economics 97.13% 61,586 1980 Analysis Censuses of Employer Branch 96.48% mean 40,702 Provided that employment 95.23% Fringe 20,47Benefits 6totals 1980-1983 for the less Total than Vested$50,000 OF EMPLOYMENT a 97.98% 9,42 AND 7 COVERAGE 97.10%a BY EARNINGS 96.00% 16,053a a95.51% 37.0% Employment % Covered % Vested AUTHOR'S BIOGRAPHY 44 Census and Salary in 1983. Office Workers of TheResearch survey represents, and 100.00% Statisticsin p68.50% art, a follow-up 40.95%to a similar CONSTRU Workers and Salary CTION Workers 2,130 100.00%(102) 66.09% (295) 55.33.25% 75 44.56 Total 65 May years Earnings 1979 and over CPS and the 100.00% a May 1983 a CPS 100.00%are not 1,630 strictly 100.00% 20.30 comparable. In Total less than Earnings $30,000 FOR WOMEN AND 100.00% 89. MEN 75%IN THE ERISA 100.00% 73.40%WORK FORCE, 100.00% 60.35% MAY 1983 100.00% 51.58% number break-in-service. likelihood minimize 6.1 million ofthe persons of workers, growth being covered Byin or employed now, the 25 by percent pension number a by pension of aof coverage company covered the plan thehas and employing workers growth rebounded in the sector, and500 number maximize in or are those of more inpersons the sectors industries workers. decline who as protection downturn before both appear manufacturing. follow-up coverage our toinhave toas balooning four an and workers difficulty Yet decades earlier vesting thedeficit, near coverage can May rates interpreting retirement be 19some 7analyzed. 9declined rate effort were for them age. predicting from funded auto Theand Atheir workers cyclcial comparison provide by the a1979 did diminution behavior Department inappropriate rates. not of decline total of By ofof coverage 1983, vested policy answers Labor because the ran likely repor 1983. women composed in dist crrea tits ibutions ed seamong Although dtocourse.) tha of by betcovered employees ea 66 retired t0rn hey the ,00While l0ess did proportion and wor meeting and than not ke vested the rs, employed $know unemployment 25,00 ERISA wof workers hi0. le wworkers hetat her participation thewithin anumb trate earning hey part-time erthe were eased ofless ERISA standards wqualified om job. toenthan work 7.1 enFarm t$25,000 percent iin tforce. for led1983. workers retirement to(in by ByfuThese tJ1983 ur une are e that less vesting characteristics.5 entitlin ra empeid nthe rates t growth private to provided /futu during rIndustries esector. rby eti cyc rprivate ement lic Within aare l downswings. inc presented sector the omeERISA and pension in work (2 Em)ptwo loyer eplans. force, ntitlement groupings: pensions more Private tthan ocrecessionary ontinued aplans one-fifth lump-sum to These statistics clearly show the prevalence to Employed of pensions to Employed among middle-income CONSTRUCTION 9.04 8.24 42.08 31.07 26.79 24.07 age age Less 25 25than to to 64, Social 64, 25 working working Security1,092 Administration 45.67 28.25 17.43 particular, the 1980 Census corrected a previous undercount, so that were Workers less thanEntitled $50,000 5,77897.98%7,065 92.76% 13,164 84.87% 12,962 30.5%79.98%35.3% ERISA Work Force TABLES I000 I000 hours hours or or more more effort conducted in May 1979Growth fundedSectors by the Department of Labor and the to Future Benefit September 17 and 18, 1984 25 the to 341979 years CPS benchmarked 3,723 to ERISA the 73.66 latest Work Force Census, 46.56 the population 27.10 totals would Total Earnings Directed 100.00% interdisciplinary 100.00% staff 100.00% with advanced 100.00%degrees in measures anticipate For from this time the reason to the time. cost receipt a preliminary ofThis ofthefuture problem downturn statistical pension has for been benefits. pension analysis recognized protection. The wasby survey conducted otherfindings While analysts for the using those of Industries manufacturing with benefits coverage (DOL) coverage andwith rate with theworkers utilization rates for Social long-tenure the of returned Security ERISA overrates workers 70work toAdministration percent. from their tend force IRA jobs towas Another and have during 70 (SSA). 401(k) greater percent 9themillion plans expansion. The pension with May workers, indicates 53 1983 coverage percent survey orthat both 37.5 of Total 1984, segmented of rsectors support 1983 in etirem the significant over ethe ntcoverage for and out 40 be EBRI nretirement. percent egrowth fi because /HHS tsplant rate.l_O0 jum May of sectors. pe they dclosings all 1983 /In by 100.00% On tend covered 1.2 1980 CPS theIn to mil and pension William other lhave gener workers ion. broadly ahand, low l, 56.15% Graebner supplement and wages the based even 35 percent recessionary and stated using took layoffs transient 32.52% in place imputed of all Aand History sectors in employment. future responses, permanent mid-1983 ofare benefi The provide workers dollars) provide pteri s.ocare considerably dover increased In be between atw ge, 1979 eenhowever, nearly the twenty-five from greater sur15 74 vto eyvesting percen sthe percent and was vtast sixty-four not of for in majocovered orit ne workers 1979 yof years of to str nonagricul between workers ong 76ofeconomic percent age ttwenty-five ur who awho l are growth. in work employees most 1983, at andlikel least Reand the ayl payment. workers. of all covered The More additi th public anonhalf employees of tlump-s he woum rkexpect benefits force,to 51receive incpercen reasestonly the of aatll olump-sum talnonvest agriicu benefit, nglturraate l Growth Sectors 1979 Table 1 Employment, Coverage and Vesting: Distribution by I0 ERISA ERISA 35 toWork Work 44 years Force force Distribution 3,656 54,363 56,153 of82.89 Women 38,057 40,441 Distribution 61.50 25,326 20,027 of21.39 Men be somewhat statistics, higher. deThat mography, impliespsychology that employment and law. Developed increases data may for be PUBLIC UTILITIES 811 159 129 96.06% 93.11% Social (age (age 25 25Security to to 64, 64, working working EAdministration. arnings 100.00% 100.00% The EBRI/HHS 70.01% 72.02% survey parallels 45.10% 36.84%the May 1979 Tot 45altoEm54 ployees years 3,833 2,552 483.32 3.68% _2,458 68.33 21.96% 14.99 the Total SOURCE: slightly imputed Employees Prelimin data too st ary udies differ robust Employee 54,363 on disability, forand Benefit coverage employment 38,058 health Research and and fordecre 25,480 Institute mortality. benefit ases treceipt am20,027 bulations ayAdvised bebecause Director slightly of of members recession Re EARNINGS tirement, of adversely the ERISA affected work Employment force planwith Coverage growth, valid pensions responses Employment still for acovered ll Coverage itemsaused majority in the because percent goes pension coverage covered beyond of workers employers coverage provided this the work scope ofand want byall force, entitlement of employer ages totheprovide are pre anticipating vplans in ious and industries benefits study, is is probably broader future however, for with benefit long-tenure coverage than a result by that asking receipt. rates ofselected employees additional the of In over complex by 1979 and 60 $1-4,999 Although before pension separations. benefit comprised proportion the coverage recipients the beginning of ofnoncorporate The covered the did rest older were ofworkers not of theindustrial women. durables self keep I00.00 recent earning employed up robust manufacturing (Women with infrastructure, less may employment expansion. made 24.29 than establish up $25,000 provides 37 gains including apercent also Keogh an 3.5 during 7example increased plan, manufacturing, ofa those period more offrom a more than of 70 Gross tsixty 1,000 to Ihe RAsacovered ccrue and hours Na years tional Eme aannually rmembers ani of ningful nK Product s--The age of and than benefits expanded ERI have cuSmu workers Albeen ative work no atwith force provide matter less disttheir ribu had than the tio for no employer antst Ithemselves repor aopercent te f tve for of edsted one the whe annu under tbher year aeelnceono fit rate or mor 401(k) sy.no more. between by t These they bem compared yploove yees, r to 10earpe less nsrcenta between than ge points one-eighth $10,000 for and of $the 25,those 00p0rivate percovered yea secto r. runder A and greate private-sector byr nea proprl orytion20 PUBLIC UTILITIES 14.95 13.96 50.34% 42.58% 85.42% 81.96% I000 I000 hours hours Table or or2 more, more, Cumulative one one Distribution ERISA Work Force of Employment, Coverage and 12 Total (000's) 55 toEm59 ployees years 1,159 49,736 84.05 36,890 72.43 18,941 11.62 underrepresented. on proposedThusand the ongoing recessionary statistical impact and research on coverage projects. may be the May 1983 EBRI/HHS CPS pension supplement and May 1979 $5,000-9,999 I00.00 37.51 13.20 effort year ofbut tenure adds ornewmore) information on lump-sum benefits, individual retirement COMMUNICATIONS year 25 underst toof34tenure ayears ted. Vesting or The more) 1,200 effect by 1,404 Earnings of this 27733.undercount 7By 5 215on 15,9calculated 77 92.04 11.8 rates 788.7should 5 be indi (O00's) 60 vto iduals 64 years themselves. 664 88.07 76.56 11.51 DOL/SSA CPS pension supplement. questions of different nature Employment the oflabor the patterns about growth pension force lump-sum, in of and system the nonresponse the service-related distributions, itself. number for of the vested two sectors individual questions. workers was robust retirement expanded. Many in more view accounts Private employees of the Total because percent. massive analysis.8 coverage entitled Employees Aemployees unemployment /cen Two for to tury The total patterns the regression af want ERISA tvested erand of to re work tlow ch iremen work benefits, aincluded nge economic force tlonger are bec had factors aincluding exhibited: megrowth. atreached an firms impor likely lump-sum This with 7t4coverage anpercent, to t resulted pension affect insdistributions.) trumen rates although benefits. pension in t for aofdecline half coverage only Large the 51 in $I0 95 which would tpercent standard arrangements. By he,000-14,999 percent csecond ontbe exhibited ras inrecessionary ten ,1979 do quarter titled male not, to Pension employment employm to 72 probably of percent adjustment a1979 benefi eplan nt I00.00 alosses. preferring ndtedged intvesting ahe 1983. process. t down re second The tirement. to Furthermore, by growth rates 5reinvest As 7qu .93 278,000 arter many sectors exceed Although workers of their employees the 1983. proportion are 30.76 section funds tin heheavily Furthermore, large figure inint401(k) he the of unionized weighted fell fworkers agrowth ce the tofo of ea emplo rnings pensi yeesonunde vest corveremp in ageloye their isr di pensi prension ected on pl tpl oans wa ans rdscan asthese be theycompa midd grow lre-inc edolde otome r,thepwrob orcumu ke abl rsly,ative haccr_ oweve/ring . pe employment rcentage (see pointstablefor6).pubThe lic higher sector public-sector wage and salrate ary wreflects orkers. the Compa greater rable ...................... .............................................. COMMUNICATIONS 14.39 13.08 59.56 58.49 87.07 84.02 minimal. 35 to Table 44 years 3 Cumulative1,262 Distribution Dr. Emily 44.42S. of Andrews* IRA and11,4 Spousal 79 IRA 19.57 14 o Director, Contract Research 1979-1980 Total less 65 years than Employees $5,000 and older 2.50% 54,363 227 67.1 11,900 1.05% 7 0.61% 59.25 2,373 0.54% 1,413 7.92 (O00's) 22,970 15,207 31,393 22,851 social and economic policy, we are preparing for its $15,000-19,999 i00.00 71.92 44.83 19 1979 79 MINING accounts (IRAs) and section 660 401(k) 17salary 7 reduction 117 programs. 88.73 82.72 45 to 54 years Participation749 by Earnings 50.96 8,781 30.55 aless (000's) Datathan not $5,000 available for 1979. 1.86% 0.82% 0.26% percent did less industries not thanknow of$I0,000 President's covered fell whether while workers they those C16.21% ommission were anticipated forentitled theonother Pension 9.benefits 67% tohalf future Policy held atpension 6.54% retirement. constant. benefits. 5.98% firms to Arecessionary (IRAs) Middle explain tend andIncome deferred to the conditions. establish Benefit change compensation inpensions the In absolute coverage plans more under readily numbers, rate.section Vbecause ariables millions 401(k).I ofsimilar of /scale covered economies to those workers in in sector The relative disappearan coveragegains rates ce, inagain fell pension less in coverage astrongly context and than estabenefit blished public entitlement by sector the needs ratesallocated of suggesting $20,000-24 around of The towards benefits the firmtheir sAK_resate ratio were ,12 those 999 own at ofpercen laid acompany. covered Figures service-related faster toff in workers rdauring te1983, than I00.00 to thindustries esugges the employment 19 y82twould ing recwhich esgrea on between s7ion, 9.34 their texperienced er emp May employee own. loymen 1979Furthermore, t 54.85 employment and informa fell Maybut1983.1_!1 tion growth. more coverage abou a/nd t participation Consumer expecting dist the ributi most oPrice nse future vere orates f Index IR recession retirement A byparover in ticipation creased 15 since benefits percentage at World usin ang(excluding Wav tab apoints rerage les II. 2for annual lump Pension andthesum 3.rERISA ate pro Ta distributions) bl tof ework ection 38.2force shofor ws percent men and prevalence vesting Covered wgains orke ofrscontributory are within foundthofse orplans inc theomewhich ERIcate SA gor may work iesbefor constitute cashed ce as well out nea .upon rly Furtherm termination 59 pe ore, rcent the of of MINING 11.14 10.27 ERISA Work41.87 Force 28.57 80.40 76.57 55 to Table 59 years 4 The Status 281 of Coverage58.35 and Vesting 3,919 among Women and 41.21 15 6less / Following than $I0,000 past survey 14.33% practices, respondents 8.74% were 5.06% instructed to exclude less than $15,000Responsible39.46%for $2 million 30.70% contract25.45% research 23.82% program. Directed less thancap$5,000 tial and with 4.84% the acquiescence 2.10% of most0.76% Americans. 0.35% We Men FINAN 60 Cto E, 64INSUR years ANCE 3,444 138 58168.65 435 2,302 71.94 38.3272.42 Civilian Civilian less Social than Employment Employment $15,000 Security and Railro 36.19% a95,3 d 95,3 72Retirement 72 28.72% 53,445 from 55,515 their responses. 21.15% 29,309 22,633 less less th than an $5,000 $20,000development59.54% 2.50%of three52.39% 1.11% surveys 46.98% on 0.88% pensions 44.85%1.30% and wealth. less In terms thanexpec of $i0,000 ted coverage too much and28.56% participation, from retiremen 18.32%tsome . employees We believed 7.01%appear retiremen to3.88% interpret t the personnel that Cwere table hanges during added 9 in were and coverage the tofound asset that downturn to and sector management. influence the pension alone, costs entitlement the of Unionization taking coverage extentup between of slippage much is pension of closely the were the coverage Mayloss less tied 1979severe suffered as toandwell pension May foras in $25,000-29,999 pensions, fell even the moredegree leading of nonresponse to I00.00 lower cover remained age rates. 79.14 substantCiover al.age55.26 rates today should pension more be between slipped age earning that totween women profile wo 61men thirty-five less cMay tpe ov hrough restem hcent raof age. 19F9 ve than entitlement be from layoffs, ofc$25,000 and ome Fu and nona rthe Mincreased fifty-nine agr entitled rymicu dismissals or increased 198 to el,tu3r.future aalmost lto female years Although pfrom empl ensions and retirement 6oof 2yees employment 63 plan page. eprices rpercent in tcent usin closings their income gof moder of Iand RA own all all sacharts ted in from vea right ested workers rn maconsiderably nyalaeass swsteeper of or larger the in ke than tryhe 1979 s enter high path fall by to employment. FINAN & REAL CE,INSUR ESTATE ANCE 9.74 8.23 6.78 5.10 56.45 59.21 Priv (All (Allateemployees employees Table Sector5 &&Cumulative self- self- 27,550 Distribution 100.00% 100.00%60.11% of Employment 56.04% 58.21%48.21% and Coverage 30.73% 23.73%11.90% by 17 less than $20,000 57.18% 50.59% 42.76% less less than than $i0,000 $25,000Constructed76.48% 16.21% estimates of 71.98% 8.86% pension coverage 68.40% 4.17% and 66.67% vesting. 3.09% less than $15,000 60.81% 51.51% 23.56% 16.77% would rejuvenate and stabilize the teaching profession, the $30,000-49,999 I00.00 83.91 61.57 & REAL ESTATE Analysis The SOUemployed) employed) RCE: viewsPreliminary of inthethis Earnings distribution statement Employee for Women of Benefit arecoverage andthose Men Research and of the vesting Instit author uteby earnings tabulations and should category not of be 2less / Olivia than $25,000 S. Mitchell and 74.22% Emily S. Andrews, 69.95% "Scale 63.34% Economies in Private less than $15,000 39.46% 23.52% 13.76% 9.39% less While Public coverage than theutilities, question $20 number ,000 ofascovered communications, their 81.28% own workers inclusion 76.28% increased mining in their and for both employers' 43.35% wholesale years using pltrade 36.40% an while theexhibited imputed others protection. The private manufacturing. 1983 In industry, particular, reasons surveys chur sector earnings ches, behind Benefits are employees. data Many also andthese and from tservice have investigated hetochanges the fa abeen ctlesser ories; May sector aare 1983 subject inextent, not spare coverage order EBRI easily /of HHS us to agecollective rates determine tanalyzed. and CPS he dis geographic pension were tress the bargaining remarkably Thesupplement cyclical offirst region an for apparent stable. costs ofare many the The Table be 1982, Coverage percentage higher Recessionary Itheprovides rates to sequence of that theposted information extent work Sectors--The of double force inthat May meeting ondigit larecessionary id-off the 1983 distribution inflation ERISA were workers standards. adversely sectors and were ofsebenefit vrehired ere include affected recession entitlement asmanufacturing, by the the would recovery 1982 from be $50,000 The within Table $25 th cthe 67ova,erage npercent 000 lcomparative athat bor 8the and pepresents manuf rexhibited for $o10,00 vyea in er caerc1983. t0uring in findings indata togcompa by re$25 aIn ter total indus on ,r0is 0other I00.0 of 0onumbers. employment, ntries.Z pe vested the 0to rwords, y7ea /0May rbenefits peFin rrAs an pension cent 1983 pension agll e. 84.90 ay.,oresul and f the As coverage th coverage tothe ,ase vacst tonsequence, vested he Maymcontinues 68.50 aj propor and orit 1979 inyfuture taion surveys of the pension toem of addition pbenefit protect lowomen yare ees PROFESSIONAL oTable theSenior 6May Vesting 1983 Economist 6,401 EBRI among /HHS Non CPS 1,5 agricultur 78pensional supplement. Wa961 ge and Salary 64.96Workers63.95 1978-1920 79 attributed 25 to 34 years to the Employee 9,883 Benefit Research 46.81 Institute, 32.33 its officers, 14.48 trustees, less less Multi-Employer than than $20,000 $30,000 Pension 85.89% 59.54%Systems", 82.86% 41.07% Industrial 80.08% 28.63% and Labor 7Relations 8.85% 21.99% Review, aging bureaucracy; allow the payment of lower salaries; Not reported I00.00 27.23 13.94 SERVICES PROFESSIONAL 7.63 6.87 12.22 13.04 42.66 41.81 indicates that andpensions the ERISA are Work broadly Force by Age distributed and Sector among lower- and Nonagricultural Nonagricultural sponsors less 35 July tothan 441981, or$years 30,000 other pp. Wage Wagestaff. 522-530.7,77 85.1 This 985,181 7% 85,181 statement 63.07 82.57% does 52,019 54,079 not51.38 represent 77.45% 28,005 21,399 an 11.69 attempt to aid less less than than $50,000 $25,000 Pension and Welfare 97.13% 76.48% Benefits96.48% 57.58% Program 95.71% 43.61% 95.23% 38.34% less country. vgdeny ariables, ainedthan participation momentum. $25,000 the increase for no 92.30% inapparent coveragereason. 90.23% is greater Consequently, for64.1983 70% than the key 59. 1979. 77coverage % Analysis and used years declines conundrum of Slower the toand pension address recession inis multiemployer coverage thecoverage twoissue onpolicy rates theofagreements growth pension despite issues declining would ofsystem. anincrease interest coverage increase be expected Atto the of among the the nearly scale time during Committee nonagricultural 600,000 economies of athe recession. onin survey the of the wage equity pension number theand New middle-income recession benefiting pl Imputed transportation Public-sector an. dis Sdata po tribu usa in from on lemployees trates several e(excluding future em IRA work plo sof yeways. rafuture benefit even rin epens railroads),6 de las ess icon lining First, benefit receipt thewell plans income /many indus entitlement dist increased construction continu tdistribution rries workers ibuted e and the to within in towa be and number inworsened. manufacturing rmdiathe government. ddle n mof idd economy ERISA lincome workers e-inc work omwere eBetween workers vested force on among thought-provoking. three expected receipt of lump-sum covered perspectives. for to hbenefits afive vewage aemployment marked Employment and totally The salar effect groups ychanges top ofon workers nonagricultural every panel inourMay incre sector conception shows 1979 asedofwage and the tfrom heofMay and economy. 39.1 the absolute salary 1983. degree percen workers The number tof tfigures vesting o 42.4 (the of In sum, new findings from the May 1983 EBRI/HHS CPS pension supplement SERVICES a Number of workers too small for rates to be calculated reliably. and and Salary Salary Table Workers Workers 7 Utilization 100.00% of Volunt 100.00% ary Retirement 61.0 63.49% 7% Programs 25.12% 32.88% among 22 or less 45hinder tothan 54 the $50,000 years U.S.passage Department of 5, any 79of 56 7.43% bill Laborpending 70.11 9before 7.07% Congress. 58.72 96.09% 11.39 Total Earnings 100.00% 100.00% 100.00% 100.00% less than $30,000 96.62% 95.61% 77.89% 74.33% that, in many, sometimes lengthy periods over the last Percentage Distribution Across Earnings Group_ a WHOLESALE middle-income TRADE workers. Private 2,682Nonagricultural In particular, 403 Wage 76 and percent 138SalaryofWorkers all 68.36nonagricultur by 63.26 al Total 55 toEarnings 59 years 2, 100.00% 708 73.13100.00% 65.38 100.00% 7.75 8less / Final than findings $30,000 will 85.89% be presented 7in 0.96% Emily S. Andrews, 57.81% The Changing 50.31% Profile less suggests participation and economic than that $50,000 costs more Designed responses ofhigh the 99.66% andsalaried system: appear managed workers, toMay 99.54% bracket 1979 more Current the employees 95.23% Population "true" innumber 94.44% government, Survey ofpension plan and unemployment provision salary of employers Furthermore, covered cen workers tby ruy, would workers rate banding employer during has bewas in failed less together athose atpensions period likely I0.I to industries. employ percent, smaller ofto have increasing all provide contributions not just who In undergone wathe an six employment. tpension edmining months towithin work. ain and after financial their As public the Intable the our Taft-Hartley compens business utilities, 8crisis shows, ation 1979 for rDlayoff aespite nge retirement and from lowering these 1983, the gains, the most benefits broadest overall ofthethese for definition coverage most both industries striking years rate. of employment, exhibited but Second, difference did this not strong that in effect greatly lof across-the-board abormay all alter for have civilian ce been the earnin second provided workergs row less with byon employer than otable nly $425,000 08pensions. pfor ercent %aeach Em yepalo or. fyyear) -spo All usaincreased lthese IRAs % of benefits heby ld 3bymillion are tho%se observed ofemployees eaTotal rninginles abetween ssystem nonagricultural Ano sh percen average otwhertthat . over wayveste Similarly, tone-third odworkers ebenefits xamine the higher employed, th propor feor dthan etimp ion stlroy covered iprivate-sector bution erof pla funor tsure ofexceed vested ppension ensrates. ion pr inevi benef abenefi ous These public liyts tsrfactors epor ior cl sated imed private through lead by WHOLESALE TRADE 9.60 9.45 15.38 13.82 39.97 36.99 Age and Type of Program Nonagricultural 60 to 64 years Wage 1,424 63,20170.98 43,90765.91 26,009 5.07 Nonagricultur Emily less ofthan Pensions Andrews $50,000 al supplement. Wage in earned America, 97her .13%(Washington, Conducted 63,201 Ph.D. 91.87% inrese DCeconomics a:rch 42,576 EBRI, on83.65% scale forthcoming). from economies the 19,8367University 9.05%in pensionof Total Earnings 100.00% 100.00% 100.00% 100.00% current difficulties, we assume that by reversing the process ment Coverage Vesting RETAIL wand and age SSalary an alary TRADE Table d salWorkers Workers a8ry Employment, earner 5,833 s covered 100.00% Coverage 100.00% by 503 aandpension Future 67.3 69.4 182 7earn %Benefit 7% $25,000 Entitlement 46.89 41.15% 31.39% a year45.96 or les 27s. Pennsylvania. SOURCE: Preliminary management. Dr. Andrews Employeepresently Benefit holds Research the position Institute of tabulations Research Associate of Total Earnings 100.00% 100.00% 100.00% 100.00% more plan.7 SOUR significant CE:/persons Preliminary declines workingEmployee ininthelarge extent Benefit firms ofResearch unionization, were among Institute those combined tabulations without with reported aof shift most comparable pack participants. In aaddition ge; ofand (I)the olddisman Are toemployers decline tothat Given employer-provided tservice lingsuffered ainwould tchoice hethe sector edifi be number by between cless egrowth Social pensions ofof likely re these tSecurity. covered and iremn distributed to two ta,institute contraction measures nonagricultural we The canfarily pay-as-you-go rein coverage a pension vigora inacross manufacturing, workers tewas if they Social selected falls did declines cycle While compounded Furthermore, relationship characteristics many trough. into other between employment the thebetween Nevertheless, extent industries employer themen or that twopension and significant were unionized years. employment women affected system Concentrating has employment downturns growth by been dida the variety not since responded within persisten onsuffer May 1979 ofmajor special to c1983, eamong the the of components. recession financial the factors, the those data Awith employees women the than vestin sharp 1979 strong g$25,000. jumped rec ates and plus onofinanci mic 1983. from bythe Tho1do ase 0lwn 3self-employed, 1.7 ttOn ourn ereserves li20 the gpercen ibl is peeone runlikel cent tenabling tohand, tocont narrowing when y36.1 rto pension ibit lute ump-sum le percen to adto to weather to tcoverage .the dist arobust spousa (The rERISA ibuti thedid lplan propor oworst ns work Inot RAgro taion arde wkeep force, reth. epression added mor ofupeAsthose twith ota the in l pension to statisti nearly csplan. on a 25 the Ofpercentage cthe umula88.2 tive million point distribution spread nonagricultural ofbetween employment, private wage coverage, and sector salary aand ndworkers, vesting public RETAIL TRADE before8.49 and after 7.49 the Recession 16.37 14.43 42.86 45.74 age age 25 25 to to 64 64 only only at Publithe c Sector Employee the May Benefit 1983 10,50 EBRI Research 7/HHS CPS Institute. 84.90 pension % Before supplement 64.20% joining and 20.69% EBRI May 19 she 79 held 9/ More ambitious imputations for those individuals who were eligible for the thetheworkforce? May 1983 EBRI and;/HHS CPS pension supplement. SOURCE: anPreliminary economy thaEtmployee has losBenefit t its fine Reseac rch ompentInstitute ive edge.tabulations This is of Total 100.00% 100.00% 100.00% BUSINESS SimilarlTya,ble & PER- 709 percent Cyclical 3,184 of Changes all vested in 668Employment benefits 225 and belong Coverage 33.87 toinnon theagricultur 33.83 30 al Nonagricultural policy oresearch DOL Labor /SSA Wage positions Economist CPS pensionat supplement. the 59,217 Social Security 42,252Administration 25,512 and 1974-1978 the U.S. Nonagricultural survey but did Wagenot respond58,009 to any of the40,830 pension supplement 19,522questions were responses SOUR fourCE:decades. Preliminary in 1983. The Employee reasonBenefit for this Reseashift rch Institute in nonresponse tabulations has not of been not workers toward Security among changes as the have workers tsmaller key he took meeting the system one. mirror-image indicator May place under companies, was 1983 Furthermore, ERISA intwenty-five buffeted EBRI of the standards of /the HHS may distribution the number by Csome PS have his years the pension led toric argument led of results of to of employees to assump supplement. age an age, the of could increase and tion tenure decline sluggish who sixty-five be tha may aof tnd made ineconomic retiremen become over earnings theyears that coverage one eligible tgrowth lower within and million older. rate. in cost the for Government coverage wage throughgap.layoffs rates isA the lin arge rather government onlybody sector thanofwere waewith ge conomi particularly cuts. growth c liter Third, inature employment depressed employers tries and in towithout comparison expl coverage. ain a the pension to It the is this employees econom 49.5 indicate likelytrend ymilto headed lion meeting that be andwfound ere toward fell theERISA coimputations by in vere the nearly standards the d recessionary buyppe 2.5 arincreased for pen million inc sion plan ome trough, bpworkers participation rlthe ackets. an employers and number primarily 28. On7lyof in would mi4ll 1983. 7workers through iopnebe rcent hunlikely This adaexpecting drop aocc latter f rueto in d sector ves difficulties btEmpl yo tbenefit eed oayees rnings. benefi total anent tticip sexperienced The ivesting tleme accrued atedanttatherates. in at byreceip tby rawomen eti blethe rem tPublic 2ent. of ware as Social lump-sum 3p7.9 sector resented Furthe percen Security benefi rmvesting ortin e,tin sthis system co19 in mpa runs 83 mase r.) nner. is veral oat in nsThese just recent with wa Inys: gains this under newyears. (I) ca were se, 85 as BUSINESS SONAL not SERVICES included. & PER- 8.68 6.27 13.02 10.80 34.74 31.81 Department and and Salary Salary of Workers Workers Labor. ERISA Work Force 100.00% 100.00% by Industry 70.39% 71.35% 43.08% 33.65% 25 to 34 yAssistant ears Secretary 3,184 for Policy 78.08 49.72 28.36 (2) theHave May the 1983 cyclical EBRI/HHS Ccosts PS pension of thesupplement. 1982 recession reduced a Percentages is a exclude powerful 9.0%and of inexpensive nonagricultural instrumen wage tand ofsalary social workers $1-4,999 12.47 5.14 1.30 SONAL SERVICES eage mploy25 ees Table to earning 64,I0working Cyclic $25,000 al Changes or less.in Employment Characteristics of the 31 age 25 to 64, U.S. working Department of Labor a35Percentages to 44 yeaFs exclude 4.9% 3,261 of emplo88.22 yees in 1979 66.30 and 4.1% of 21.92 employees Nevertheless, and future 4.1% re oftirement theinERISA 1983, benefits. workcoverage force whose Itrates provides earnings for three are a not relative of reported. these overestimate four industries of aThe ERISA which employers, identified. Percent most work prices recons the ages perplexing those force likelihood tSuffice ru rose exclude ction. without between faster question it4.8% Ato ofnew pensions, than the say of future my arising that men ttwo wages. h replaces and although retirement survey may from 3.1% Asfind tyears. the ahe of more consequence, old." it EBRI income women wage easier /This HHS whose and for May preliminary to salary indexed earnings today's 1983 expand workers CPS benefits during are analysis pension werea Wworkers retirement plan private ithin would the covered sector. benefits rehave cessio bybeen Whereas nary bya 6.7 pension unlikely secthe million tors,government plan dto ecto lines institute or a total ahav coverage total eofta one ken 28.9 ofduring rate p38 million lacemillion fell in a workers. period a5.1 veremployees. age percentage of tenure, Within high $5group add among coverage Between th existen cash ,000 ose-to 9,those ou 999 ccont is etcompensation 1979 samong most rof ibutin affected ofwage and likely tgemployees heir 1982 differentials to by costs own an to the Social Irepresent under by 1cRA recession, 9.08 ontinstituting ribu with Security between age tions, aworkers however, twenty-five nonw trust men 1or new 2. (2) kin 13who and gpension since as fund will sp women. and dis ouse weak assets tribu plans have sixty-five ea 7economic .tLe 3rn ions 3afell enough where ving lessof from growth these years none than years defined $24. were and and of7 percent veste in datakeeping donbenef of volit wi unta coverage sth.rythe Bpoth arincre tici and stat paat se ithat io stniin cs of in the farthe Ish RAeasxceed rethe and of private th 401 fem e(k) ale 13.7pla employmen sector mi nsllion sutgg just est emfrom ploy passes that e4es 3.1 who t60o the proportion of employment, coverage, or vesting held by employees earning I000 I000 hours hours or or more more ERISA Work Force by Industry SO inU45 RC1983 E:to 54whose Preliminary yearsearnings Employee are 2,365 not Benefit reported 86.39 Research Institute 71.36 tabulations 15.03 of Prepared cost estimates for legislation on mandatory retirement I__O0There / employees? is also some evidence that a change in the wording of the key not a Percentages reported. exclude 9.9% of nonagricultural wage and salary workers $I0,000-14,999 22.20 21.80 19.87 SOURCE: Table Prelimin II aEmployment, ry EmployeeCoverage BenefitandResearch Future Benefit InstituteEntitlement tabulations of38 ERISA ERISA 55 toWork Work 59theye force Force ars May 1983 EBRI 1,082 /HHS 49,750,562 36 CPS87.81 pension 36,890 37,803 supplement 76.29 18,941 24,494 and 11.52 May 1979 cyclical and 4.1% coverage of downturn. the question and ERISAtemporary work may have forcedisability led whose to aearnings decline insurance. are in not reported reported. Initiated coverage. and The planned 1983 co surpassed supplement participation indicated exceeded (Coverage vered in80 contributions among a19 findings percent 7downward 9rates than all is even and in nonagricultural shift why 1983, an during culminating coverage offsetting inusing the thisthe structure gains recessionary wage during underestimate imputed among and of asalary responses, the the period. period ERISA of determinants workers vesting of the workdouble gap totaled force rates. in of coverage did pension digit 49.5 Only not unioniz billion high 4Wi points unemployment 5.4 th percen inflation taoday's tion from tot $22.1 of 93.4 and and informa undoubtedly all lagging billion to the workers. t88.3 ionextent demand. and percent, influenced technology would of Plan em the have pthe lo we growth ycoverage mrun epublic's need nt among outin norate had tdesire lemployers aconduc rge interfund for to tfi all rms. reduce without public private transfers Shifts taxes policy coverage sector and not in $1pre the service older. $25 empl unanswered 5,000- v,iously 000 oy ERISA e 19r,999 ato On pen yea work build aquestions svthe iailable. ro.nsforce other an (The prov adequate the ide easide, Simil lhand, ignumber iba16 alrly, e.32 employment-based gthe table reate popu ofemployees number rlati workers 5de ongr provides ee 1of r9.89 ep who looking orworkers fesents pension. had cgreater overforward suffered aabout gwho e In 21for detail .anticipate 2table 20 8tore wpe or aalrke cent pension 8, on wage rsthe the benefit at oflosses ERISA rose epercent. less con arntribu oth ver taion n These $25 a ,plan 000. sphigher ecifi balances Th c evesting amount majori upon trates, y isosepara f caehowever, lmcptulated. lion oyees from mask whoNearly thone he ave characteristic firm, a83pensper or ioncent (p3l)anof of through never many all ((age age 25 25 to DOL to the/64, 64, SSAMamajor yworking working before CPS1983 pension research andEBRI after 100.00% /HHS supplement. 100.00% conference theCPSRecession pension 74.1 on74. 7(adjusted %77 supplement women % infor48.44% 38.08% athe missing nd Mlabor ay 1979force. 60 survey to 64 ysubstit ears uted the 616 phrase "contribute 91.70 to a79.29 pension plan"12.40 for "have a $20,000-24,999 12.81 17.22 20.43 *I000Portions hours DOL/or SSA of more, this data) CPS one testimony pension supplement. were drawn from a forthcoming EBRI study, The I000pension hours or plan." more, one b Number of workers too small for reliable rates to be calculated. keep million.) pace with Selected increases in articles employment. and edited volume published by major fell coverage findings fromnot on2.5 coverage related millionand toworkers future differences to benefit under inreceipt the 150,000. compositional are Coverage reported shifts in increased thisinTestimony. the to 53.9 work unionization through go In aunemployment. distribu industries llvernment terms IRA tpion tahe rof tici spending. only perpe and of equity, pants.) earnings tslipped Funded ra firm tionthe size 3. of for plans 7following my are percentage tthe hs.probably ERISA areIns topics tead, points designed work a result aresearchers re force. from pursued. to of 68.6 Women lawithstand yoffs and toWhat are 64.9 legisla in more income percent. larger tcyclical ors thangroups can more In work entitlement taken by yduring se should oeun5.3 gan erforce place eaccelerate million txp ages heense infl is and at than agradually at to ccount retirement had ion they during 25.3 athe ryowrmillion ou 1983 saugmented the ld apir increased gaoplSocial lcurrent rov den workers. wo ide uld pato rSecurity fachute. by or expansion be include themselves. Thus over unwilling Amendments 63 800,000. those topercent aton rate o agree not their In of more other been coto vcurrent ered intrade passed. keeping words, workers job current with This even for of non public cash-ou agricultural tplans. provisions wage Publicand forpensions svery alary small workers are often vesearn tedtheless benefi onlytthan s source from the $of defined 25,000 coverage cut benefi off. for t Changing year year of of tenure tenure Profileor orofmore) more) Pensions in America and from EBRI Issue Brief #33, "New SOURCE: Table Prelimin 12uni aCum ry versity ulatiEmplo ve press. yee Distribution Benefit of ReseEmployemnt, arch Institute Coverage tabuland ations of 41 a Number of workers too small to be statistically significant. $25,000-29,999 6.87 9.21 11.04 Survey Findings on Pension Coverage and Benefit Entitlement" (August 1984). Vesting by Earnings for the ERISA Work Force a Data onthefirm May size 1983 EBRI not /HHS applicable CPS pension to federal supplement. government employment. l_ll/Other surveys of pension coverage also show coverage rates edging off million aforce. benefit long This run workers from expansion mayemployer in represent 1983 path. pensions? orthe 61 percent effectDoofofpatterns the all recession nonagricultural of benefit on pension entitlement employees. growth. ensure highly consider Coverage uncertainties, unionized fa rates cts chowever. arefully held plants. virtually before In Unionized sum, proposing constant although firmslegisla in appear thethe tpension ivemore financial changes. read system y sector to The bore reduce hearings certain (finance, costs $30 unfortunate though less four ,000-4times than 9,aggregate 999 aas situation year, likely coverage those to waseworking aamong rn a 8.23 direct less wage fewer than result and than $i0,000 11 salary .of 71 1,000 sluggish and workers hours, over 14 economic twice fell those .75 after as workers growth likely theunder with 1982 Pension all cgovernment plans. ompensation ages cover The wereemployees. aage for ge eligible profile and future vesting forpension of Atretirement lump-sum the roughly benefits. timeen par benefits. tiof atllel lemen the While tthe If is survey, some in the tche ome5.5 employees opposi distribution nomillion tfederal e tmight opersons thawith tworkers choose found in76 SOURCE: SOURCE: Preliminary Preliminary Employee Employee Benefit Benefit Research Research Institute Institute tabulations tabulations of of Previous since positions 1979. These includeinclude one year calculations of university of prior teaching year and pension five years coverageof $50,000 and over 2.01 2.89 4.01 economic the research May 1983 for non-profit EBRI/HHS CPSinstit pension utions supplement such as and the May Federal 1979 Reserve DOL/SSA Bank among the employed May 1983 workersEBRIfrom /HHS theCPSannual pension March supplement Current Population and May Survey 1979 and scheduled that recessionary insurance, workers byand costs, will thereal be House itsentitled estate), structural Commmitt toin e pension underpinnings on the Waservices ysbenefits and remained Means (professional when on they sound. thereach Dis services tribu retirement tionand pensionDOL CPS/SSA coverage pension CPS supplement pension among large supplement. usingand imputations medium-sized provided firms byfrom ICF the Inc. Bureau of of New York and the Organization for Economic Cooperation and Development. SOURCE: Preliminary Employee Benefit Research Institute tabulations of Labor Statistics' Level of Benefits Survey. age? Do men and women partake equally in the pension system? the May 1983 EBRI/HHS CPS pension supplement. a Percentages exclude 9.O'/.,Of employees whose eaz_ings are not reported.