T Th he P e Pu ub bl li ic R c Re et ti ir re em me en nt R t Res ese ea ar rc ch L h La ab b A A j jo oin int t in ini iti tia ati tiv ve e of of E EB BR RI I a and nd N NA AG GD DC CA A S St tu ud dy y S Sn nap apsh sho ot t M Ma ay 7 y 7, 2 , 20 02 20 0 Tenure and Age Trends Reveal a Changing About PRRL Public Retirement Plan Landscape The Public Retirement Research Lab is a retirement-industry-sponsored collaborative effort of the Employee A TALE OF TWO TENURE TRACKS Tenure Trends Among Public-Sector Workers (Federal, State, and Local) and Private-Sector Workers Benefit Research Institute (EBRI) and the National Association of Government Defined Contribution Tenure for public-sector Administrators (NAGDCA). The PRRL mines data from its Public Retirement Research Database, the first-ever workers across all classes is 12 years longer than private-sector tenure database specific to public-sector defined contribution data, to produce unbiased, actionable research aimed Median Years worker tenure, which translates of Tenure at enhancing understanding of the design and utilization of public-sector defined contribution retirement 10.1 10 into different retirement at Current Job plans to better inform public plan design, management, innovation, and legislation. To learn more, visit program needs. The most 8.5 8 7.5 Federal 7 significant difference in tenure 7 www.prrl.org 6.5 6.5 Local 6 is between federal and State 6.5 4.9 4.9 private-sector workers, despite 4 3.9 Private a substantial downward trend in federal worker tenure since 2000. 2000 2006 20 12 20 18 We would like to thank the following Partners of the PRRL. A YOUNGER PUBLIC-SECTOR Age Distribution of Public- and Private-Sector Workers Over Time WORK FORCE EMERGES Founding Partners: The share of public-sector 7% 7% 60+ 9% 60+ 9% 12% 14% 12% 14% Federal State C wa o p rik ta el G rs i rn t ouh p / A eir 4 m 0 es i ric san Funds Sector Sector 50–59 21% 50–59 25% 27% decreasing sharply. This 25% 23% Invesco 33% by Age by Age 34% 30% decline will result in a Nationwide 31% 40–49 40–49 significantly younger work force 36% 26% 25% 22% 40–49 40–49 30% 25% 24% in 5 to 10 years, as workers now in their 50s and older retire and 20–39 41% 38% 38% 41% Supporting Partners: 20–39 33% 28% 28% 32% are replaced by the smaller ICMA-RC group of workers now in their 2000 2006 20 12 20 18 2000 2006 20 12 20 18 40s. As younger workers Prudential comprise an ever larger share of Voya Financial the public-sector work force, 6% 8% 7% 60+ 9% 60+ 10% 14% 12% retirement programs will need Local 15% Private 50–59 15% Sector 50–59 22% Sector 18% to evolve accordingly. Contributing Partners: 20% 20% 27% 28% 22% by Age by Age 40–49 40–49 26% Ben Taylor, Callan — PRRL Co-Chair 26% 23% 21% 31% 40–49 40–49 28% 26% 25% Wendy Carter, Segal — PRRL Co-Chair 20–39 53% 49% 47% 48% Brenda Anderson, Nationwide — PRRL Vice Chair 20–39 39% 37% 33% 37% Keith Overly — PRRL Plan Sponsor Advisory Council 2000 2006 20 12 20 18 2000 2006 20 12 20 18 T Tr re en nd ds i s in P n Pu ub bl li ic c- -S Se ec ct to or E r Em mp pl lo oy ye ee T e Te en nu ur re e P PR RR RL R L Re es se ea ar rc ch S h St tu ud dy N y No o. 1 – M . 1 – Ma ay 7 y 7, 2 , 20 02 20 0 © 2 © 20 02 20 P 0 PR RR RL L. T . Th hi is r s re ep po or rt i t is c s co op py yr ri ig gh ht te ed b d by t y th he P e Pu ub bl li ic R c Re et ti ir re em me en nt R t Re es se ea ar rc ch L h La ab ( b (P PR RR RL L) ). Y . Yo ou m u ma ay c y co op py y, p , pr ri in nt t, o , or d r do ow wn nl lo oa ad t d th hi is r s re ep po or rt s t so ol le el ly f y fo or p r pe er rs so on na al a l an nd n d no on nc co om mm me er rc ci ia al u l us se e, p , pr ro ov vi id de ed t d th ha at a t al ll h l ha ar rd c d co op pi ie es s r re et ta ai in a n an ny a y an nd a d al ll c l co op py yr ri ig gh ht a t an nd o d ot th he er a r ap pp pl li ic ca ab bl le n e no ot ti ic ce es c s co on nt ta ai in ne ed t d th he er re ei in n, a , an nd y d yo ou m u ma ay c y ci it te o e or q r qu uo ot te s e sm ma al ll p l po or rt ti io on ns o s of t f th he r e re ep po or rt p t pr ro ov vi id de ed t d th ha at y t yo ou d u do s o so v o ve er rb ba at ti im a m an nd w d wi it th p h pr ro op pe er c r ci it ta at ti io on n. A . An ny u y us se b e be ey yo on nd d t th he s e sc co op pe o e of t f th he f e fo or re eg go oi in ng r g re eq qu ui ir re es P s PR RR RL L’ ’s p s pr ri io or e r ex xp pr re es ss p s pe er rm mi is ss si io on n. F . Fo or p r pe er rm mi is ss si io on ns s, p , pl le ea as se c e co on nt ta ac ct P t PR RR RL a L at p t pe er rm mi is ss si io on ns s@ @p pr rr rl l. .o or rg g. .