STATEMENT OF DALLAS SALISBURY STATEMENT OF DALLAS SALISBURY percent, 90 percent or more EBRI for 23 percent, and 50 percent or more lowest working in to Florida, reduce the at 46 scope percent. of the Among state Social the most Securitypopulous benefit First, Americans regard health insurance as the most important retired such This protection in 1988 does to not through 77 consider percent their the spouse's of economic those employer retired need in for plan. the long-term For year workers 2020. care EMPLOYEE BENEFIT PRESIDENT RESEARCH INSTITUTE employee benefit. for levels, 55 percent. in response Private to demographics pensions or that annuities the United wereStates 1 percent will not states, First, s California mall employer is at incenti 57 percent, ves. Small Texas emplis oyers at 53 havepercent, never Private funding. pension Compared receipt with would current increase annual from 28expenditures percent to 66 of aged 40 and over, the numbers are 16.5 percent and 11.8 percent, EMPLOYEE BENEFIT RESEARCH INSTITUTE tosponsor 19 e percent d pension of plans incomein larg for e 14 numpercent bers. Not ofevethe n whe elderly, n tax rat 20es and face New until • 73York well percent into is at hold the 64 next thepercent. opinion century. Choice that employers of tradeshould or profession be percent in the year 2020. Private defined benefits would be paid to approximately respectively. $35 As billion, noted previously, demand is expected Medicareto hit supplementation $100 billion per is SUMMARY BEFORE THE COMMITTEE ON THE BUDGET percent year between required to 39the to percent provide years 2016 health for to 10 2020. benefits percent, to their 40 retirees. percent to 59 leads 57 werepercent Coverage v to ery wide hig ofh retirees, for variations in bot these h and individuals nations as33 well. percent c and anAircraft corporations would he compared manufacturing have and income with legislafrom tthat ion is frequently related to income. Among workers aged 40 and older with U.S. HOUSE OF REPRESENTATIVES percent and regulation Theforquestion: 4 wepercent, re lig will ht. future Small and more e retirees mployers than have , and sufficient 60thos percent e whcash o work for income for 1 at private in 92 the• defined percent, 49United percent contribution compared States. hold this plans. Germany view with even eating if repla it cand es means drinking 42 receiving percenta retail lower of incomes between $10,000 and $15,000, 8.8 percent have an _l_Employment-based pensions paid benefits of $219 billion in 1988, compared with pension benefit. percent. Government pensions JULY were 10, 1991 1 percent to 19 percent of establishments t earnings, hem, This have base Great place at dcase Britain 18 a h simulation ig percent. her 29priority pFirm ercent, may onoverstate size he Cana alth isda insuran also the28 ce choice a percent, major if any of to employer meet health promise,expenditure compared needs? with 53What percent are of thethose implications at $50,000of or a $1.4 billion in 1950. During this period, Social Security retirement benefits income factor. Japan for Among 38 4 per percent cent. those of working the elderly, in 20 firms percent withto fewer 30 percent T- th80 an for100 4 annuities benefit is provid and ed. thus With regular health caresupplementation costs rising and heof alth Social benefit movement away from annuity streams and toward lump-sum more. Yet, at the other end, the very poor can qualify for the "first payments grew from $652 million to $148 billion. In 1990, employment-based distributions for future retirement income? percent, I am 40 percent pleased to to appe 59 a percent r beforefor you 4 percent this morning and more to rev than iew 50 the employees, mandat France, e Second, s being 27 Switzerland, employees discussed, percentareand trealistic he have the addition Netherlands about an of employer-sponsored pressures pensions haveon mandatory b the y s future mall Security. Therefore, we adjusted lump-sum payments and dollar" protection of Medicaid for both acute care and long-term care. plans held more than $2.9 trillion in assets that will flow as benefits in the percent programs and the for need and 3 forpercent. near retiree universal medical Again, coverage. protection however, and The cash the Swiss income. supplemental and Dutch pension, economic employers compared security is likely oftowit the occur h elderly, 79only percent the at tvarious he margins of tfederal hose . This working programs growth for and will decades consumption The ahead. question: By to 1988 an , "extreme" 14 will percent future of that ma generations rried mightcouples resultof and from retirees unmarried present have persons importance aged 65 and of overpensions had income varied from by government total income. employee pensions This relative (compared firms policies programswit that hare impact 100 advance orthefunded, more elderly,employees, while and the the French degree and system more to which than is income pay-as- 90 tonly Challenges rends.occurUnder if tosimplifi Individuals th eese d programs more in Meeting ar" econservative actively Future " market Needs edassu . mptions, sufficient • 71 cash percent income expect to Medicare meet to the pay growing lower benefits cost ofwhen medical they with 9 percent in 1976), and 29 percent had income from private pensions or composition you-go. of retiree income showed little change between 1976 percent security retire is of affected than employees it by does private today. inpensions. firms I will with focus 5,000 explicitly or on more the pension recipiency still increases to 70 percent, and private care? And, since long-term care is the elderly's largest annuities (compared with 20 percent in 1976). and 1988, with the only significant variations being a decline in employees. pensions Second, si increases mplification. These patterns to 60 Thepercent. have proposedbeentechni observed cal and for definitsome ional role that T •h53 e private percent individual pension wouldfaces be systems willing a steep toplay payhill higher in ahead providing payrollin taxes retirement terms to of out-of-pocket expense, will approaches be found to finance earnings time and(from can 23 be percent expected to 17 to percent) continue. and an increase in income security. Today's Retirees My name mAt is an Dallas Historic Salisbury. High in I am Noncas president h Incomof e the changes At assure ct ohe uld the othe red r same uceextr alevel d em mie n,istrati ofwe Medicare ve rancosts. simulations benefits But some with assuming o44 f the percent pr thoat posed all building it? Private the resources pension income to meetcanfuture make needs. a diffThe erence,proportion as the • Employer-sponsored pension plans represent an important source of retirement There has been a trend toward the establishment of from assets (from 18 percent to 25 percent). changes, such as a proposal to allow certain employers to elect an d Employee initial efined willing be section n Benefit efitto and accept of Research all this ade lower fin testimony Institute ed cash contri benefit (EBRI), bu indicates. tion from paym a nonprofit, Social ents we Security r nonpartisan, e madin e in of the U.S. population aged 65 and over is projected to grow savings for most working Americans. According to Employee Benefit Research order to maintain Medicare. Taken together, the data show that supplementation of Social defined public alternative Non policy contribution cash furesearch ll incom fundi eng organization plans, is limitat excee p sp io tionally n ebased cially base in d w important, it Washington, h solely the advent ow n ith DC. the oM f e accrued 401 dicar (ke, ) Institute annuity from (EB approximately form RI) . tab W ulations ith this of12tc hh eang percent May e, 1988 recipi today Current ency Population ris toes more to Survey 84 than perc employee ent, 22 benefit supplement, in May 1988, 62 million civilian workers, or 54 percent of all • 64 percent say they would not retire before Medicare Security cp M a liability percent rivat sh edicaid, eor EBRI income deferred pe oafter fn ot she ions has the r ishe the plan, long aalt what rrange toh year 75 car may been m allows ents e pe 2030. "have su rc committed a e bs (establ nt idi retiree . uninten eThis s,i" shed Theto d and to ed means achieve diff under impli the eeffects. rencce accurate it that the a higher reWhile nt be Revenue tsh twee e on statistical standard nrelative it owAct n t may h eir- s The Future of Social Security such workers, worked for an employer that sponsored a pension plan. Three- of living in retirement. As Professor Tim Smeeding noted at an EBRI- of analysis enc occupi 1978) ourage ed eligibility of and hom empl public es employee oyers be if ing policy their w the istock th employer benefits most young ownership important. did w issues. ork notplans. foprovide rces 2 Through 3 By to retiree 1987, fun ourd research, and the medical number sponswe or "ex number treme" of andactive the bas workers e case paying indicates Social that the Security base cas taxes e may to fourths of all workers covered by an employer plan, or 47 million workers, ERF support Forum: beneficiaries "Reliance on any willone be source reduced of income in even the iffuture. it is Social A n of ov strive defined edefined rstatprotection e. to benefit contribute D contribution efinedplans, and ben to 88 efit plans itthe percent may recipi formulation represented e ha ncy say ve they the in the of 73 owould ppeffective o percent privat site buy eincent sof e protection ctor and ive all responsible ris plans, fo es r iffrom firms up There is no doubt that the Social Security program will actually participated in the plan; two-thirds of these participants, or 32 million with older work forces. they were forced to retire. Security--can Health Care Ibe s th ae sign MostofImporta economic Statement nt Direc dependence t Noncash and Ben insecurity. efit ''1 w from 5 health, orke 7.2 rs,p 68 erc were welfare, epercent nt entitled to and 58in .9 to retirement 1975. p aerc benefit ent,Byindicating at policies. comparison, retirement. Consistent that Datatdefined heon bt awith hse e benefit income caour se as replacement charter, splans umes alternative for the nation is to go back to much later retirements, but continue to pay benefits to retirees for a long time to come. Today, level provided by private pensions are not generally available. Typically, private represented we almost do •not no 70 28 lobby lump percent percent or sums think advocate of . Availa all thatplans specific b employers le in data policy 1987, indicat should down solutions. e be th from at required th32 is ipercent s tonot tin he that would require a set of policy changes that do not appear on the the greatest controversy is over reducing tax rates, not the program's plans are targeted to replace 60 percent of earnings for high earners and 80 Income Replacement 1 c T 97 as he 5 ird, .. D P Of e er fin preservation. ec 42 d apita cmillion ontp riebrsonal utionactive Mak annuity he in alt ghparticipants rc o rar ll ec ov e ipi ers esp nce ynding min in ore cre1987, as among le ikely s, on 28 the and the million eld ot m ehe o rly re r radar long-term provide screen viability. today. retirement Before At The the current benefits ability Committee payroll as of part people ontax of therates, every to Budget docash employee's evenflow thatinto mucthe h percent for low earners after 30 years of service, in combination with Social in the future will be strained. grew to $5,772 in 1988, more than three times the level for the were Private in Pens primary ions and defined Retirement benefit Security plans (66 percent), hadvantageou and, from compensation. s 32from .8 perc aThis ent tax support tper o s 51. pec 9tive drops percw ent to ould . 46The incr percent e ba as se e ifcas peit nesion maydollar stills trust will exceed annual benefit payments until the year 2016. Security. Coverage in other nations can be compared with that in the United means lower salaries. Data on the income replacement level provided by compared ov population availa erstat ble e annuitization at as witr h a etir wh e27 m ol ee nt. . b million ut Out-of-pock Tb he y far for ofee lgoing e tss. 32spemillion nding trends pehrav (87 e capita mad percent) among e pension t in he States. Germany replaces U.S. 42 percent House of of earnings Representatives , Great Britain 29 percent, Canada Including interest accumulations and "cashing" them in to make 28 percent, and Japan 38 percent. private pensions are not generally available. Typically, 1975. Today's e Paying dollars lderly More More in r Retirees ec ar che easingly d tothan $1 Stay Have ,697 porta Even 27.5 Significant in ble.19 million 88, Theycompar Pension hav workers eedal Income sw o ithmad were $1 e,059 prese covered in rvation 1984 lby and ess However, these numbers do provide a picture of the impact benefit payments, the trust fund is secure until the year 2028. Since, private likely. The plansnew are proposals targeted would to incre provide ase the 60 realizapercent tion of 401(k) t$ h522 at pein nsion plans 1977design in (Medicar May and e p 1988, p er nsion emiums up lawab from sor mig be ht d 7.1 han ave million additional on the in economi $241 May cin Third, those who could Hearing benefit on the most from retirement saving under normal circumstances, I will not be gone until the year 2034, The gap in private-sector pension coverage for workers is largely among small replacement do not report doing for h it. igh earners and 80 percent for low 1983. we pr 1988 ll- ese be ). rvation ing Em Tploy hese Total of mfor ent tomorro -figures ba preersonal stir ede w m 'sente represented he ld pensions al in erly th .this care environm paid exp 24.2 enditur ent benefits percent esof gro forin wing the and 1988 p ee ld nsion e 7.1 rly of this is a matter of personal concern. My parents can and do view it as First, workers have less available income for savings as they employers. Among those working in firms with fewer than 100 employees, 27 earners cash porta after bility. 30 years of service, in combination with percent $219 reached• billion 54 $17 of5 percent , all billion compof workers, arein d those 1988 with aged , respectively. $1 an.18 4incr b to illion ea34 se report oin f 4Participation 6 19having 5p 0e.rceSo ntcbegun iasinc l S eeto cu grew 1r9 ity 84. are a purely required T The he academic Economic qu to estion: pay issue. a and w larger ill Social Myplan portion young Health design of nieces ofhealth thetr and e Elderly nds benefit nephews and in expense. America lump view it sums a bit percent have an employer-sponsored pension, compared with 79 percent of those Social Security. The large employer that provides both a defined from r signi H more eteir al e fth m icantly esave 2.7 n personally. t "insuranc be million for nch efi retirement, ang ts e"e paym workers finan whae tn ce compared ts dthe(2.7 gr 7ew 1 babyp with percent during erce boom nt 78 percent th of r of is ecethe iv p all e es? riod ofex workers) those pefnditur rom And over , e$ s-- 652 cin an Second, they are once again being asked to contribute directly working for firms with 100 or more employees and more than 90 percent of Tomorrow's Retirees: Inflation Protection age 55. be from nefit cash and a compensation defined contri dollars bution toplan fundtradi retirement tionally hincome as not in with cludethe d employees 1983 suffici million effectiv eto nt ely to15.7 in re $148 produ tir firms em million ec b nt ing illion withplanning .a5, (13.8 At 000 suppl the o ere m percent ducation e emore nt nd of toemployees of 1990 cbe ashall ,und .in em c workers) eom rtak Th ploym ese e.enent- T patterns t he o ba in se as pd e sr ur 1988. ce have entag plan the e b seen by The question: can anyone in public office be expected to worry observed for some time and can be expected to continue. held more than $2.9 trillion in assets that will flow as benefits in the any pr ofese in d rvation e An cfin om ee d increas ex contri ofpie ng ns a b eution hig num h repr ber proportion ebe sen nt e of fit ed workers in byofthe he lum alt are ch p al -sum culation relyi costs ng di ,stri vari on b but ution es 401(k th dramatically s? is) is plans also growth • of 42 employee percent of contribution those earningdefined less than contribution $20,000 report programs. saving about something that promises to be healthy for another 25 years decades ahead. be bginning y income,to w ch it ang h e. pastAsres aearc result h ,finding future th formulas at the poor in de and finednear benef poor it as their Retirees primary have ein mflat ployer-based ion protectionretirement from adjustments plans, especially in Social when Third, for there retirement, they are are many compared faced immediate Dallas with with L. expense Salisbury 87 problems percent pressures available? of those in other earning For partsthose of _l_ Pension availability varies significantly by state, with the highest coverage in Conclusion more than $75,000. President plans spend ar1 e6 lik pe ely rcent to of provid cash e l in es csom , e, as suppl compar em ee dntal with defin 2 ed percceon nttrib for ution the 401(k) Security The participants and ave may rage have atretir small it ee in ag firms. the ed realization 65 Theand 1988 of over CPS real today rates EBS of hfound as return grethat ateon r the household budget as the relative cost of housing and higher working today, building future private pension income could prove Virginia at 69 percent and the lowest in Florida at 46 percent. Among the most education rises. plan e top preserved conomic s 20 provid perse ce and ecurity ntmor invested of e. t rh e A an tir s ee amlump-sum c e h a m ou se be seh rs in oldpoint of s distributions. any b,y w incom he prn eviou e. fed 4 seral With gene employ ration the ees . combined Me we dian re more very than The important. employment-based 49 percent of 401(k) pension plan system participants in thereported United that Statesthis is Employee Benefit Research Institute populous states, California is at 57 percent, Texas is at 53 percent, and New York is giv eldeen rly tT he h family e new percentage incom "thrift e" w plan aof s ,$1 income t2, he 173defin inspent ed1988 be,ne on fi compar t h pealth lan ed w w ait s care h mad $5,6 e out-of- 30lessin was trends their towardprimary (1) growth employer in defined pension contribution plan. Among plans and 401(k)(2) at a model 64 percent Fourth, Fourth, for . C the they significant hoicerest are of of trade faced numbers the orworld. with profession sayhigher It they has leadsinterest would contributed to wide consume expense variations to the aaslump- as high the well. Aircraft The Future manufacturing of Medicare is at 92 percent, compared with eating and drinking participants gpocket increasing 1978 e sum nerou . distribution sOtttoday he han ruse working tshe our of is equal ce old slump-sum higher for Civil of to employers incom three Se th rvic an distributions e e months hw Re av h with tir en e em pay. also eMedicare 250 nt in gro Sy defined or sw ten m more . in and benefit dollar employees, Medicaid s plans, and economic status of the current generation of retirees' and holds great world becomes one in which credit cards arrive unapplied for in the retail establishments at 18 percent. These patterns have existed for some time and 43.5 were the importance percent •established, 50 percent had ofa what of primary and those happens the aged 401(k); relations to 18 this lump tohip 34 proportion sums andcan 47 grows percent only increased in be terms of those expected to of 79.5(a) promise frequency for of the r future. ecipiency It. hasBy provided 1988, a 14 highpercent return on of investment married mail box at interest rates Washington, that can run DCmore than twice the prime can be expected to continue. rate. to worsen in the future as reductions in retiree medical Tomorrow's Retirees: Trends in Pension Coverage p couples base ercent retirement earning fand or less 401(k) unmarried income than $20,000 p and articipersons p (b) ants would postretirement aged save in establishments a 65 lump-sum inflation and over distribution, protection. with had for employers, individuals, and July the 10, government. 1991 A close eye on the There is also no doubt that the government will be in the if it were given directly to them. income Public employee from pension government plans nearly employee always pensions pay in annuity (compared form fimplications e insurance wer than protection of10change employees. and continue. a careful The hand gov onernm adjustments ent finan that ced may 64 business Fifth,of they healthhave protection and will for continue vulnerableto populations. have less discretionary This leaves There has been an increasing trend toward the establishment of defined wit andh Employer-sponsored For provide 9 • 85 percent the percent future, for in of some those we 1976) pension level can aged and expect: of 18 plans, 29 automatic to 34 (1) percent as and the shown 81 inflation absolute hpercent adabove, income adjustments. of number represent thosefrom of be income percnecessary ent as of the eldto erly payroll keep personal it tax on cost he course alt of h government spshould ending assure in programs 1977 a, sound 67continues perpension cent in to a great deal of room for modification of the present Medicare contribution plans, especially with the advent of 401(k) cash or deferred fu ture. an private Private important earning pensions employ less source ee than or defined annuities of $20,000 income bene would fit(compared forp save lans many the that wit lump-sum retired h pay 20 an Americans. percent if the annuityin workers arrangements climb. 1984, and The entitled 5 and cost 8 p employee eto of rcent OASDHI, a pension instock 1988. which owners annuity Me hdi ip today car or plans. e is lump-sum paym 14.98 Byents 1987 percent ,dropp distribution defined edof from contri covered will bution 49 program, however. The definition of vulnerable might not include the plans represented 73 percent of all plans, up from 68 percent in 1975. By According 1976). do percenot ntemployer The in make to proportion 1984 EBRI automatically automatic totabulations 40 of pag einflation re ce rolled dnt offamili the in it e adjustments. s over 1 May 988 w,ith into 1988 and incom anCurrent ph individual Based eysicfian rom Population onpe paym rrecent sonal ent grow, payroll, full 34.3 (2)will million theriseproportion to persons 33.15 who percent of active werebycovered workers the yearin with 2060 1990. entitlement if Or, present in line benefit will with comparison, defined benefit plans represented 28 percent of all plans in 1987, retirement account. Survey a ch surveys, sse ang ts esro employee se the arefrom largest expect benefit 56 edplans peto rcesupplement nt drop do to adjust th 6is 8 pe p over (CPS r ece rce nt, ntag time EBS), w e ith for furt in the he about May r.like On li one-half h1988, ood the ton h 6at 0 of e grow, levels and are (3) maintained both the number and intermediate and proportion assumptions of new retirees are accurate with the Bush administration's proposal that high-income retirees pay 75 down from 32 percent in 1975. over the decades. million hand, thicivilian s comes workers at a time(public when we and "ce private), lebrate" individual or 59 percent out-of- income lump- inflation, sumattributable but distri this bution practice s to from private appears pension pension to be plan declining. s annuities produced or somlump-sum e of this percent of the cost of Medicare Part B instead of the current 25 of all such workers, worked for an employer that sponsored distributions po asse ck tet incom spe ending will growgrow. th.increas However, es as should a positiv thee movement control to on defined health A Thepolicy public dilemma wants to for retirethose by an who average mightageseek of 61, indexation to maintain of percent, Theprotection question: may be with providedthese at a higher discretionary cost. income Pension portability should be considered along with preservation if accrued p consumption. ressures, willOn more the ot or her fewer hand, individuals it comes whe save n rin etirethe ment future cash contribution adefined their pension P preretirement en benefit sions plans plan. ar annuities, eand T alife hrvalua ee modification -four style, even blths e s and uppl if of prospectively of eto me a defined nt ll haveto work both So benefit er cfor s ialretiree future cov Se plans curity ered medical retirees, to and by lump- and an ar is e A new report from the Health Technical Panel to the 1991 retirement benefits are to be translated into retirement income following a sum e preretire cl that in mploy ecarly om payouts indexation e er ment in programs plan com jocontinue, e b , o c would r h re ange la ar 45 te e.d.und we probably Today million Four ecan r , pre pe also nearly ssur rc workers increase ee nt ,expect all and ofdefined the t (44.2 the r heo tir se movement ee proportion s cont r percent), ep may rorting ibutionnot to oftotal plans lump-sum actually hworkers ave ca provide tsh he long-term care protection. Yet, many are not saving when tax for retirement? And, will individuals save or spend lump- Advisory Council on Social Security presents the long-term challenge for adde lump-sum d cash. distributions of vested retirement benefits when workers leave effective opportunities exist, and one-half or more do not continue to participating participated r distributions etirement inin c in in omplans e defined theof plan; to less benefit hold thtwo-thirds ansteady plans $5,000and or r of e to port encourage these decline. ed peparticipants, ns aion Why? faster or Because shift annui or ty to sum distributions when they change jobs (or, "save" them clearly. 5 It projects that tax and premium income will exceed outgo jobs. More than 40 percent of private defined benefit plans provide for lump-sum 30 million workers (29.5 percent), were entitled to a participation in by defined favor com pe, aying In programs contribution 1 compar 988o,rates ff e 11 d credit when .4are plans w pe itrc h they lower card ent (assuming 44 of carry debt) when percent retir ?an ee the the sAnd, explicit of movement had employee those will healt cost. hretirees with was in has The suran still income ace education be choice. legal). (ot able he of r as early as 1996, and maintenance of the program at present benefit distributions, and the number is growing each year. However, individuals do not benefit challenge atis indeed termination significant. of employment or retirement. In Moreover, $20,000 or there more is a(16 tendency percent toofspend those small with lump-sum income of distributions $5,000 to to thanmanage Medicare)investments from an employ and ercash , and flow an addi well tional enough 3.2 peto rcentmake had levels will require a steady increase in taxes as a percentage of generally rollover distributions (13 percent did in 1988). Legal changes (such as rather than to save them. retirement lump-sum distributions "last a lifetime"? mandatory 197 $10 How 9, ,000Do ; 61.1 an five-year We dpe40 rc Compare ent pe vesting rce we ntr )e , of wit w ct ov h h h ic o e h se re Our dhw ave itby hTrading increased incom an e employ Partners? otfhe$ e1 r- number 0s,pon 000sorto e of d $lump 20,plan 000). sum , s, taxable payroll (from 4.38 percent in 1990 to 8.11 percent in the The views expressed in this statement are solely those of the author and should not be attributed have served to discourage pension sponsorship. Small businesses prefer to pay What Will Present Pension Coverage Produce? 4G 2Sm 9.5 ovee ernm ding perc ,ent ent Timo pe th parti nsions y M c.ipat "Economic se hd o,wed and a Wecompara ll-B 25. e1 ing p b of e le rcthe ent rang Eld e we e ,rly: rw e ithe Past, ntitl 2 e p Pr d erc esee nnt to t, and o af year 2060) and spending as a percentage of GNP (from 1.97 percent to the Employee Benefit Research Institute, its officers, trustees, sponsors, or other staff. The longer-service workers extra cash rather than watch pension dollars walk out the Future." Paper presented at the EBRI-ERF policy forum, May 4, 1989, benefit. Can those New The with U Initiatives incom nited e States, of He leslJapan, s p th Expand an Ger $5m ,000 any, Pension rece Caiving nada, Coverage? an ped nsions Great , and Britai2 n8 Americans Are Worried About Affording Retirement today to 6.8 percent in the year 2060). In 1990, this equated to door with short-service workers. Employee Benefit Research Institute is a nonprofit, nonpartisan, public policy research Washington, DC Pension For some availability years, EBRI varies and others significantly have made by use state, of estimates with pe have rcentparticularly of those wiextensive th income voluntary of $20,000 private or more pension receivingsystems. them. The All organization. $3,012 in spending per enrollee, compared with $1,169 in 1970 (in 3U.S. Department of Commerce. Bureau of the Census. "Estimates of Poverty th m eedian highest value coverage of privatein pe Virginia, nsions or atannuiti 69 espercent, among and recipie the nt are constant Pension advance 1989 simplification funded dollars). and and are preservation provided tax proposals incentives recently by set the from EBRI the Pension has commissioned and Retirement the Gallup Income Organization Simulation Model to undertake (PRISM)a Pension simplification and preservation proposals recently set forth by the Bush Including the Value of Noncash Benefits: 1986." Technical Paper 57. to assess future retirement income. A "base case" simulation that forth administration, fgovernment. amilie by s w the as and Bush Japan $3,5t8 h6 ose ,administration isor introduced currently 29 perce innt working and theof House those incom toand eintroduced encourage for the all Senate, famili inexpansion could e the s. Among House have of some series Washington of , public DC: opinion U.S. Governm surveys ent Prin onting economic Office, 1987. security. A number of effect on pension coverage and participation. and 1Smeeding, the r private ecipi findings the ents,employment-based Senate Timothy 6. are 7 p could significant M. erce "Economic nt haverto pensions eport some Well-Being this ed discussion. effect annual to ofhelp the onbe Elderly: n pension finance efits a Past, bthe coverage ove Present, retirement $13,000. and and 4Moon, assumes M. that "Changing a retiree the Stru given cture the of Moption edicare B of enefian ts: annuity Issues and willOptalways ions." 51991 Advisory Council on Social Security. Report on Medicare Projections by Future." Paper presented at the Employee Benefit Research Institute-Education Staff study. U.S. Congressional Budget Office. Washington, DC: U.S. participation. Social of take the a Health itquickly S would ecTechnical urity see growing account Panel pension eto d retiree the recipiency for1991 population. 100 Advisory p grow ercent Council from These of 40 on thenations Social percent incom Security eare ofof .those also 13 and Research Fund policy forum, May 4, 1989, Washington, DC. Congr Washington, essional DC: Budget 1991. Office, 1983. EMPLOYEE BENEFIT RESEARCH INSTITUTE 2 4 8 75 6 2121 K Street, NW / Suite 600 / Washington, DC 20037-2121 Telephone 202-659-0670 FAX 202-775-6312