37 15 169 31 TABLE Ii: EMPLOYMENT, COVERAGE AND FUTURE BENEFIT ENTITLEMENT4021 The number of women meeting ERISA standards for plan participation als7o 11 14 4 17 130 22 43 138 35 9363 236 12 I28 134 52087 20 41 285 TABLE I: EMPLOYMENT, COVERAGE AND VESTING: 33 26 CONTENT S .,UMMARY S 3229 24 4239 BEFORE AND AFTER THE RECESSION, MAY 1983 AND MAY 1979 23 grew considerably as full-time employment became more prevalent. In $I0,000 and over twice as likelyAUTHto OR'SearnBIOGRAPHY less than $15,000 than men. Those TABLE 3: CUMULATIVE DISTRIBUTION OF Table I0 pr TAB ovLE ides6: pDISTRIBUTION art VESTING of the AMONG framework BYNONA EARGNRI INGS CfUL orTUR FOaAL R more NONAGRI WAGE general CAND ULTURAL SAL anAaRlYysis of these THE FULL PICTURE reasonable TABLEway8:to EMPLOYMENT count the , number COVERAGE STATEMENT of Aemployees ND FUTURE who BENEFIT may be ENTITLEM eligible ENT for future New stskipped atment Evidence questions thaton Vestin theandpurpos K'don't e know' of the responses.9 Subcommittee / on Taxation and Debt Tcoverage for HE In suggest annual COSTS terms benefit hours that manufacturing Oof F TH equity, eworked. pension Entitlemen BUSINESS the tcoverage This industries. CY following at CLraised E reremained ti4rement. / the topics As proportion more aare A result, robust gre pursued. atof erthan the employment perWhat indicated cproportion entage income inof bythe of groups the youERISA women nger raw Csyste An NFhang Sooot oc tes rhe ial emrsinswa tanc in wSecurity ay s eth ,bu to effeted two ERISA examin cprimary oveer byawge otrk thehesduring fodis our resul rc tcrib eestust(th io oth fneeofempl las recession, slugg of otyment pension irow sh in an eco th dnbenefits teoacov mble iccer osts age grow 8 for isth tloosthr sea maintaining inoch am ugh owng hich year) the pension vested ind and ustry some benefits. plan. and tendency theSpousal (Figures se Both trovward icestatistics IRAs include ssh ecotrter are or aimputations less job far lowtenures, exceed well coveradistributed for gethe coverage missing industry. 13.7 million rates dat toward a)Industri didmiddle-income employees not al decline. shifts who The 1979 Gornowth ly 51.3Sect peorrcent s--Withof althe l femaexception le wage andofsalmining, ary workersect s owe rsre iexh n ibi theting public plans. Public pensions are often the only source of coverage for workers expanded by 2.6 million workers for the ERISA work force. This The data show that the coverage rate for the ERISA work force, at 70 percent, t:ax-sheltere TABdLE Ideferred IR 0:A AND CYCLI SPCcOAoULmSpAensation LCHAINRA GESPARITI Nfr CIEMPLO oPmATIaON YMEse NTco BYnCdEHAARRplan NAIN CTERI GS Sin aTICSlieu of current WORKERS AND THE ERISA WORK FORCE BY AGE AND SECTOR, MAY 1983 BEFORE AND AFTER WAGE THE AND RECESSION, SALARY WORKER MAYS,1983 MAY AND 1983MAY 1979 TABLE 9: CYCLICAL CHANGES IN EMPLOYMENT AND COVERAGE IN THE SUThis MMARY testimony* investigates two basic issues concerning the fairness 1 and ERISA work force, compared to 63.7 percent of men. By 1983 the female TABLE 7: UTILIZATION OF VOLUNTARY RETIRMENT PROGRAMS earningTABLE less 2:thanCUMULATIVE FOR$I0,000 NONAGRICDI are ULTURAL STRIBUTION less likely WAGEOFAND EMPLOYMENT, to SALA be RcYovered WORKERS COVERAGE by a pension AND VESTING plan and changes. OFThre THEe ERfa ISA ctors WORKfound FORCE toBY influenc INDUSTRYe, co MAY verage 1979 Arates ND MAY are 1983provided by retirement benefits. 0nly findings on coverage and future benefit receipt are sbenefit tatistics from ER onISemployer AtheWORKcumula FOpensions? Rti CEveBY Idistr NDUST Do ibRuYtion ,patterns MAYof19of 7em 9plo benefit ANyDmenMA t,Y 1entitlement 983 coverage, and ensure Management be abenefit work percent mong tweenforce covered ages. 19 entitlement 79hearings from and wWhile age 55 1983 to and is for changes t57 ell "to asalary percent. system develop a in different workers th coverage aFurthermore, ta was full, sincreased tory. not appear fair self-regulating Employment even hearing to from though be 39.1 associated record gthe ains percent at coverage the on between current time with to rate we 4th 2. the ree4 efficiency Over three-quarters of employerof these pensionworkers plans,were thefound keystone in theoffinancial our employer sectorbenefit and in pworkers between dur rices able rose agoods servi nticfas ip ces amtte aer nufa ath nd lump-sum cturing anmanuf wages. acca industries turing sh Emplo Asouts. yament cconsequence, ould were Although Co bring prim verage ary the iabout ndemet xexpe edalscFuture the benef tation (repr de its cBenefit eline senting of exclump-sum eeded in the the workers employment May 1983with EBRI gains only /HHS were 40survey percent all within data of aspousal lso the show service-pro IRAsthat heldvwomen iding by those are industries. gaining earning less pension Tablethan8 government e!pe a/rrncenta Both ovegrethe$25 em rop1979 se ,loyees. 000.toand57Th .the 4eAtmpea19rc jthe 8or 3enity t, sur time veof as ys of ethe mwere plo the pyropor eesupplements ssur ti wvho oey, n ha ofvno emen toafederal the pmen eesti oion ngoing ngworkers pElan RISA Current never AMONG PRIVATE NONAGRICULTURAL WAGE AND SALARY WORKERS expansion indicates that even during adverse conditions employer pensions have is salahigher ry incth reases, aBY n th EAaRN tTABL Ipro Nof GAND ESbaaabl 12: nyTH yFOR EofCUMUL ERISA most NONAGRICULTURAL theATIVE eWO would xpanded RK DISTRIBUTION FORPno CE eem rt,cent .pWAGEAND loMAY yment AVested 1983 priori, OF SALARY groups. of Co grow ver WORKERS Th ted his ifinding n pension is Emily S. Andrews, Ph.D. Library Number of Workers (O00's) STATEM system: ENT (O00's and (000's and Entitlement 3 Population Survey (CPS) which is conducted monthly by the Bureau of the standards edged upBY tAG o E65. AND 1 pTYP ercent E OF . PROGR TheAM,incMAY rease1983in the proportion of more likely to have a higher social Security replacement rate. Nonetheless, AND THE ERISA WORK FORCE, MAY 1983 Covered 1324 Fou Total rth St., S.W. Percent Percent industry for 1979 EMPLOYMand ENT,198CO 3.VERAGThes E AeND fVESTING actors BY consist EARNINGS of aaverage on-the-job EARNINGS AveraEe Employmen Tenure t ACoverCed overage by TotalLarE Vested e Company Benefi : ts Employment Coverage Future Benefit reported fringe INT that extent RODUCT workers benefit ION of in this unionization, willtopics" Testimony. be entitled reflects average to % of pension the job desire tenure benefits % of of andCwhen ongress firm they size, (O00's toreach rely theand retirement on decline facts in percent. Tvestin borne Table afell ble gbetween by 6(I) II bysh workers Similarly, ow presents Does easrnin 1979tgthe hat s. and and statistics existing rthe the 1983, eThe tirepercen proportion edata sthealike system tdecline in on agetable through employment, of ooffwastax 2pfuture riva smaller athe reincentives te-sec 19 presented coverage 8pension 3using to Amendments. r ensure imputed wo in benefits and rkers thisfuture th data. a manner. wtith claimed benefit vested by two INDUST Evalu yeRY aating rs were changes even Ein stronger mplo coverage yment with Eand mplo 4.6 future yment million benefit Cove workers rag receipt e added Percent between to the Covered the ERISA May work 1979 entitlement The contributions steeltiming industry, of inculminating the greater forMaythe19 numbers 83 most inEBRI apart) period /than HHS and ever CPof S adouble putomo before. ensiob niles. digit supple Amonmgunemployment. Co enver tthose age provided wo losses men meetin In the insum, fir these g st shows re cprofessional overage cipien Census thcaytrate these jumps to observed ser collect v8ices atmajor agein which nation tindustry 1983. wenty-five aposted l stgroupings atistics coverage to 13 per led rates oncent employment to of an of72increase covered andandnearly priv in unemployment. emplo at64 e percent yse ment ctor p$25,000. women articipain tedthe Those inERISA Seligible ocial workSefcto our rce it contribute y reapnd resented neit toheraa spousal dgiain d 43of pIRA 4er .1cen are mtillion mof orethwelikely orkser tas. teto be see an expense account or a golden parachute. cons continued istent to withprovide the economi protect csion of for the the labormajorit market y ofandemplo retiremen yees tmeeting planning. ERISA coverage could not be expe Workers cted between PercMeant y 1979 and EntiMay tled1983. Entitled FOE THE ERISA WORK FORCE,Washington, MAY 1979 AND D.CMAY . 20024 1983 IN 1983 DOLLARS Statement For (000's and (000's and Entitlement INTRODUCTION with Employer Union Contract 500 or More Workers 3 1983 Change 79-83 Change 79-83 1979 1983 pension benefits treat all employees fairly? and; Employed) Employed) % of Employed) Consequently, in addition to information on pension coverage and Coverage for thls group expanded by 2.2 million workers and nearly 1.3 76 percent of pension coverage is(202) alloca 554-5105 ted to the 81 percent of the women tenure, the likelihood 1979(EOmploy- of 00's1)983 being included Ves IRA1t9ed 79 of in 1983ato Distribution union Futur1e979contract, ato mon 1983 Lu 8 mThose pand the Inclusion in the Written Record of the rather than myths. % of % of (000's and women To age? tal Do jumped men and fromwomen 31.7partake percent 88,214 equally to 36.1 in the percent. 49,530 pension (The system? 28,708 proportion of total for industries receipt coverage ce. The for within number alone 1979the aand of ccERISA ounted (00 c1983 overed 0's) work comparable for woforce rkers (o more 00's appears also th to )anthose grew half (000 surprisingly presented by the 's) over total one in broad lmillion otable ssesin in 8view em but pdur loof yausing ees bles the benefits of InDOL4.3 this /SSAmillion cgener aCPS se, ally the pension workers pin roportion creabetween supplement ses with of 19employment, 7a9ge. and and the Around 1982.covera Maytwo-th The g1983 e,number irds orEBRI ves of of /tHHS ing acovered ll held cCPS overed workers by pension wage and although ERIS respectively. Alocal stand the woarrds kpension forfce. or psystem lan pabore rticipat certain ion, recessionary coverage expan costs, ded byits2.structural 2 million found op employees portunity entitlement, in the and toupper a27 nathe lyze per income csurvey enthe t brsens of ackets. provides itciovered vity Only valuable of publi 47 emplo c-se percent yer ct daor ta pension of on workers, those labor placontributing nsforce ittodiminis business status, hes to million more women gained entitlement to future pension benefits. participation standards. Section 401(k) Individual Retirement ERISA AGE participation standards were Cset overed on the Bfollow enefit ing premises: Sum Only (I) the Emment ployment C Distri- overage Eligible VestinK Distribut for Spousial ons IRA INDUSTWHO RY BENEFITS FROM(yeEMPLOYER ars) PENSIONS(percent) (percent) 6 1983 (2) What are the relative Employed) cyclicalEmploy costs ed) of the % of pension Employed) demographics and income. within Education the ERISA work force who earn less than $20,000 a year, reinforcing the Distri- Deferred Compensation Distri- Total Accounts Benefit Di Emplo stri- yment butiCoverage on ContriBenefit butes Established Conclusion likelihood of being employed Unby iteda Stcaompany tes Senemploying ate 500 or more workers. Much $I-4,999 of the A Middle analysis Incomefocuses Benefit 10,01 on4 two groups2,433 in the labor force--paralleling 358 7 vested benefits system foraccrued a cross-section by women wof as employees? 37.9 percent in 1983.) These gains were Emimputations ployer pensito on fill plans inaremissing frequentl ory incomplete regarded as data. the co For rnerst both one years, of ourthe to wo and thereafter. Imputations relatively supplement rke 38rssalmillion ary sinceworkers sm impro is Priv aworkers. ll 19aa7vte-se 9ecompositional complex the an forty-f cdtorstatus nGearly aRe iins task. ve rates cessof in yio 1ears changes .3 ntumble future aves The rymtiing ll of Sect dual laoin benefit tange or surp age many smo effects aarnd ssed esixty receipt ofwomen older those one of to bec within jmillion are unfavorable ust variables amevested. 5 the per entit tocen population ltaffecting ted o.economic ta Vesting ltThis o20 underpinnings cemployees manufa ycle cturing. condiearnin tions. remained g Yetless The thesound. than prede cover cessor a agespecific ratesurvey, foramount auto the workers isMaycalculated. 197did 9 DOL not /SSAde Nearly cline CPS pension 83 because in an Tables IR these A with 9 and industries a I0 nonwo prresent klng expanded spouse statistics byea2.4 rn onless million employmen than employees. $25,000 t and acoverage year. While (The for the the eligible servER ice ISA The tabulations in the second panel of table I have traditionally been used to These improvements inNumber Distri- pension proPercent tectDistri- ion - incre Number asedEntitlement the prop Percent ortion of laEA bor RNINfor GSPh.D. ce att Uni acvhment ersity buti ofofomnaPenns ny ypalvani rt-tbut ai,melonEconomics, employees Vesti1976 n and g thoseEntitl withemen less t than a The fate of employer pensions is closely linked to the labor market. The EARNINGS Nonagric bution ulturCaommittee l Wage aon nd Finan Salary ce tWoorke IRrs A Spousal IRA 1983 Women are GaininK Recessionary Sectors 12 $5,000-9,999 15,323 5,747 2,023 2Civilian / In theEmployment case of the 1983 survey, 98,964the questions 56,018 are (I) Does 30,850your employer women among covered and vested workers within the ERISA work force. By Offered Utiliza- of Utiliza- con EARNINGS clusionA.B. thBaatrnapensions rd College, bution are Maathem middle atics,bution inc1964 ome benefiDistribution t distributed closely in Industries with long-tenure workers tend to have greater pension coverage both New Evidence on VestinK 17 $Analysis 10,000-14,999 of the pension supplement 17,827 data provides 10,328 insights 5,48 into4 the fairness previous Work-in-progress ein mimputed coverage plokeeping yer responses bEBRI rates. enefit with work the at syfor stem. the increase onitems Employee this Consequentl that intopic.3 Benefit were they,/share notan Research yThe reported of assessment first female Institute leads group employment oftothe Institute an consists ef increase fefrom ctiveness (EBRI) of 43.1 in all the to million GOVE reven aconditions tes RNMENT fall more. workers. ag and ai This n chon a1nging (And results c1, e905 ,workers of patterns from course, reac the 750 hof sthese large sur ixty-five vey fraction figures response 93yearsomit of must of the 93.36% age. the bepopulation aconsidered. ddition The88.2 pro 6% aplort which i5on .5On psupplement, work of ercen (All contribute tsignifi for employees ocfe call ant for was to non &Mcay ondu pl aaself- graipension nt ccultu 1979 ted rcalosings and lduring or May retirement 100.00% wagrel eand 1983 aand tively bro asnd alary plan...? adly dat buoyant 56.60% aworkers based on(2) eccert onom Are ela aarn ic in yoffs y31.17% oless uem tipmincluded loymen es. and thant Apermanent cc -rel the orin ding ated the sector deIn cline summary, ismaytypic refle losses ally ct regarded two in employment factors. as a source First, and coverage of younger low-wage stemming workers low-benefit from are more a employment, recessionary likely to Vesting pension popul 1E983 venation oduring ve5enefits rvs.4represents 0 apVoluntary er recess cent at rio eti nabout ofrement. aCpension ll ontribu 20cove percent rteions--A pl danswoof rke continue rall s coand Imp RAarison 35 tparticipants.) o pe cover rcent of predominantl of totaalll veste fyuturde lower- analyze pension coverage. They show that coverage and vesting rates generally AGE Plan tion Workers tion difference year on theinjounemployment b may be too rates weak between to build the up two meaningful pension pens supplement ion benefits; surveys (2) is GOVERNMENT Sub1cNona 0.5 ommittee 4gric10 ul.5 tu on9ral TaxatWia5on g0. e05a%and nd S52 De ala .b5try 4%Man Woargemen kersat a Private Sector Nonagri 36c,ultur 458 al Wage 51.02 and % Salary Workers 40.32% 10.69% The $C15,000-19,999 ivildata ian supporting Employment the analysis 1398,964 ,101stem from a9,422 51new ,530 nationwide5,28survey 4,09 74 5 sponsored employed) employer or union sponsored plan? and (3)...Could you receive some acc bene ordan fitce rec toipi the entsincome weredistribution. women. (Women made up 37 percent of those Experience (000's) (000's) 198 because employers want to provide benefits for long-tenure employees and PensionTHE coverage COSTS OF appears THE BUSINEto SS beCYCsensitiv LE e to business conditions, exhibiting 22 nonagricultural $20,000-24,999 (All benefits employeesat wage retirement? & self-and salary 10,283 100.00% workers. The 8,1 52.509noncorporate 7% 5,641 24 self .35% employed are of of Wcan 4of number H5.4 O tvested aprovide BE the xpercent NEFITS in of pension centives ppersons ubli insights of FROM call -se system EM in ct covered PL workers. oren into OYER couraging th workers some Paby ENSI t have aOof NS pension emplo follows the been yer issues plan neglected baenefits simil of andinterest ain rmust inthe ageearlier consider number pattern to the studies. of Subcommittee the with persons succ vesting essInwho DU to reported the RABthe LEone_N. athand, that ional they changes Bure8adid ,4 u 92in for notresponse Eknow conom(ic 44whether 6)patterns Researcthey h, (795) between awere 58 qu month 1979 alified 84.7 and e4 conomi for 1983 c79.retirement 84 exp appear ansion to million $ccsep 25,000 har hange aac rateristi tions. jobs, emcuptloyees cs.5 off. aThe nd / who their rest Pens Industries ainti of on expe cdurables ipate ct covera ation arere gemcapresented eiving of nufa and lump-sum cturing vest a lump-sum in ingentitlemen pro twovrides oughly groupings: benefi tantp.) prob aexample rallel ably Nonetheless recof essionary the refle a mor ct ,se 6.1 en aeconomy nd tit million lmiddle-income ed differed toworkers, total significantly workers. vested or 25 percent benTefits, able according of 12 inc the comp luato dthe res ingindustry. growth the lump- disum sector, stribution Indissome tare ribuindustries, ti in ofons.) industries employment,the benefits rise withfor higher privat earnings. e nonagricThe ulturratio al wa ofgecovered and salworkers ary earners to employment (from tablrapidly e o Research Associate ' 1983-date workers less than twenty-five years of age are likely to have high turnover striking. Total EmployeIn es May 1979, 88,2the 14 civilian49,530 unemployment 28,708rate re22 ached ,217 its lowest DU Tot RAaBlLEEmployees MANU. 12.1288,21 114.42 144, 5.91782 35.49 2,98877.32% 71, 2.38% 718 Less than 25 Hea5,285 ring on Emplo 19.63 yee Fringe Benef 11.8i7ts 7.77 The AKKreKate FiKures 23 by employed) the Employee Benefit Research Institute (EBRI) in conjunction with the Prim Nonaagricultur ry Metals al Wage 702 88,214 (257) (2 53,932 51) 91.28,894 98 89.81 The relative gains in pension coverage and benefit entitlement allocated Employee Benefit Research Institute (ooo's) Nonagricultural Wage and Salary Workers Total (000's) Employees a 54,363 38,058 20,027 because emplo Anyees Industri want al toAnalysis work Julylonger 26, 27at& firms 30, 1984 with pension benefits. 25Large excluded Prless 25 imary torapid 3Meta 4as yelasgrowth they rs can during 15.65 provide 11,51cyclical 614.06theirdownswings. 42.80 64 own .97coverage 55.17 Employer 29. through 47 83.93 pensions Keogh185. 3.34 plans. continued 79 Farm to in $25,00 their 0-29,999 investigation of the 5,515 effect of tax 4,365policy on employer 3,048 benefits. Aut paanticipate eminimize ddition, aoking mobiles in the ethe athe rlier growth early receipt findings 60's in 823of the atfuture number on 88 per cover (1pension c90) ent ofagecovered ofand benefits. coverage. benefit (155) workersThe equity and9survey 0maximize .48are findings reev 92the .56 aluadecline ted using both of 3ibenefits. /For ncome andpension See cthis Salary overage distribu Sylvester reason In pl Workers ti aans 1979 nd on avesting iJ. nnearly with preliminary meeting Schieber 76r15 ates pepercent rfuture 100.00 cen de statistical and tclined %ofPof re atricia ti cove covered from remen redanalysis 61.14% tthe M. workers non iin r co George, a1979 gricultural mewasand needs. raconducted tes. 32.75% Retirement 70 percen employees The By t1983, for naotfIncome ion thos'e the and wtse standard ahis sctors inreali full and re ty. cessionary swing growth Second, in May se adjustment younger ctors. 1979 aworkers sIn process. thegener edonomy may al,Asbemany the surged more wre olikely rkers ctoward essionary in toits large beJase emplo nucaunioniz tors ryyed1980 eadby re with Th Employer incre csurvey e overage 198 acoverage ses 3missed pEBRI and rfrom ovided /HH pension rates enumerating Slesssur pensions of th vey re ancover eipt aone lso out-of-work are 7out 0bpyropercent. cvon eides of arnings cenfour trcovered at the edworkers for Another firs tthe workers otward iERISA nfor earning 9 million the ma who tion work lodid under wer workers for on not t cehree entitl $5,000 experience ,in-qua or em 1979 rter aent 37.5 year sanda 6) to with womensection stem 401(k) from and increa IRA sedutiliz femal ation e emrpalo tes ymen(from t andtable from7) ashows largthe er r(000's) ates as they st Senior art their EBRI careers; specialistand (3) on employer those over pensions slxty-five andare Soci more al point since the passage of ERISA, at a seasonally adjusted rate of 5.6 Automobiles 13.02 15.22 72.70 59.21 92.41 88.28 35 to 44 y Statistic ears al Quirk 8,5%76 59.77 48.61 11.16 33 $Non 30, agri 000c-5 ultur 0,000 al Wage 688, ,611 214 5,5 49,530 47 4,0 22,21 71 7 Department of Health and Human Services, and conducted by the U.S. Bureau of Opportunities in an AKin _ America: Coverage and Benefit Entitlement, percentage of that work force meeting ERISA standards. Security. Writing book on the status of pension coverage and less than $5,000 12.47% 5On .14% 1.30% 1.26% firms Total Employees tend to establish 4pensions ,822 more 39.31readily % be72, cause 465 of scale 16.49 economies % in workers less thantend $5,000 to be a temporary 12.47% low-wage 5.08% work force 2.91% whom many bbelieve are $50 provide 45,000 to 54and coverage, year over s however, 6,185to1,6the 15 vast 67.41majority 1,371 of 56.workers 45 1,10 who61are 0.96most likely This and testimony Salary Workers presents new 10findings 0.00% on the56.15% fairness and efficiency 25.19% of the The the and members fairness the imputed of extent the odata f ERISA the of differ vesting pension work force forsystem is coverage with reealcualted will validand be responses anfor using alyzed benefit new for accorinformation all ding receipt items to inf used because on ormatio in IRAthe nof aNotNonagricultural firms the ppears Of hose NDURABLE th (Washington, covered ehold were in tiocnMA om g lbe Nemembers aUid .vested dWage aiDC: psoff ptrribution oac 5Employee ,of 8during bhing 6enefi 2ERISA ts ath aBenefit nd work eearnin crossroads 68,252 prov 19 321 82 force giRese dere less c arch ehad mor ssion, in ethan not 4Institute, 5,379 abro pension reported $emplo a2d-b 5,000 aysed men po1981). 7tali 7. swhether 26,569 cy c08 ov fell well. .eragWbut e7hor 2i.These l5te6not hcaonvta erthey xath gee cccover yin omprised clica athe ge l co rate peavof kerage jthe for ust rate.l_O0 older the eightERISA / months industri Onwork the all ater. for other infr ce aBswyhand, taru scon cture, 70 tras evper ten , cent using in four cluding with years imputed 53manufa laper ter responses, ccent turing, in Ma of y per rel to e1983. break-in-ser xpanding cat ent luive mp-sum Alth ofdifference firms othis vugh bene ice.fwho withe otrkBy have rbetween epr fcoei onow, rpcp ore e, rt t.ciently opension nare The cover of in add ains geiwcoverage industries ttoituted io rkers selec n ofted earn defined lhas umwith ipby ng -rebounded sumthe less ccoon vberage enefi tindividu ribution than tin srates $those ain 25,00 lcplans. reases 0worker ofsectors o(in ver the1983 60as to nearly two out of five earning between $20,000 and $24,000 a year. less li less kelythan thanto$5,000 $Ib0,00 e retired 0benefit 3and 1.5 entitlemen 2. 5%emplo 50% yted , 17. aThe t27%1.05% a ChanKing part-time 8.63%Profile job. 0.54% F7.7 aof rm8%Pensions workers are in NONDU percent. lessRAtBhLE an By $I MA0, NU. contrast, 000 11 76the 31.55 1civili 0.68 % an 139.96 unemployment 4.45% 32.39 7r.9 ate 8%71for .24 May 69.10 51983, .39% at I0.I THE FULL PICTURE 38 55 to 59 year 2,912 69.88 62.53 7.35 Not reported • 7,924 2,158 I,I05 the and Census Salary Workers in 1983. The survey 100.00% represents,66.49% in part, a38.93% follow-up to a Apparel 697 (175) (84) 46.21 45.82 Despite these gains, the most striking difference in labor force less lessthan than$I0,000 25 16.21% 555 19.79 9.67% 16,415 5.98% 2.30 America, forthcoming Fall, 1984. Research conducted using May personnel less than Conclusion and $15,000 asset managem 5_3.7e5% nt. Unioniz 28.91a%tion is17.c47 losely % tied 11.30 to% pension 41 bletter ess thancovered $1The 5,000 Fairness through5a_d 3&57% • federal Cyclical pr C3osts 9.07 ograms % of Employer such 28.50% asPens Soicial on26Plans .30% Security and Ato ppa 60reaccrue tlo 64 yeameaningful rs 9.21benefits It520 _ 7.90 no 69.9 matter 43.03 7 the 34.83 state 64.88 of 48.93the economy. 55.08 7.31 These pension Using incent on different Nonagricultural the ive the ssystem distribtuion patterns May for the using 1983 Wagedeve ofEBRILHHS of dat_ lnonresponse opmen &overage _ from t 68C,of PS 2an 52and apfor EBRl-sponsored ension faivesting rtheempsupplement, two l42,46 oyby equestions. r3 earnings, psur ensviey onvested onsyMs 20 aage pension tem ny ,934 benefi more and havetcoverage sex. semployees beecnanaThe be cChe particip fell overed analysis.8_ micaeven lsaworkers tion, /moreThe_01(k) le ofregression ading all 970csverage t_ _mgeslower included ant(iand 1coverage c0ip 4)ating factors lump rfuture at sum likely (es. 109benefits ) benefit Coto verage affect 93. from re 17 rates cei pension pthe t.toda 91.89 upd yIn coverage ashould ted 1979 __ 1983, whi roughly would pension /age chThe 25the exhibited bene to equivalen coverage xentitled te64 conom secti only yt employment ondid hto adist dofanot rjust ibutions this benefit keep losses. patesti ssed upat moare nythe with retirement. The found disc November emplo growth usses despite ymentse 1982 Although the ctors gathe ins effect cycliafact cre the during al of heavil figure ttrough hat theay many period recession weighted fell markingto of cmanufacturing overage employees workers provid returned e themsel tovetheir s through jobs during individuthe al re expansion. tirement accounts. percent. atcnd dollars) ohtal arac thteristi vaest t Two ipnirovided g nccsreased patterns rate between bby y from oof em vepmen rloyer change 1 740apnd percent erpension centage are womenexhibited: ihpnaplsoi ans. 19 nt been 7s9 fUtilization or to coverage thep76 rivate- persisten percent rates sect of cor e IRAs for inof emp1983, half lthe for oyeesthe the Coverage rate increases tend to moderate by the $20,000 level. less segmented than $15,000 out because .th%39.46% y tend to have 30.70% low wages and23.82% transient employment. percent Chem less 25 itcotahls a3n4wasy$2 ears 0one ,0001983 of the 13.5 EBRI70 4/highest 1HHS ,6 .07% 2712. Current 12since30. 5Popul 32.09 871 before .96at % ionWorld 22.35 Surve 21, 49.553 War 78 y % pension 85. II.41 (N 47Ia.1 supplement. Itionwide .00 88.2 3% 4 double less than $20,000 70.07% 45.98% 31.93% 25.57% TABLE 4: THE STATUS New SurOF veyCOVER Findings AGE AND VESTING AMONG 65 years and older 465 51.28 45.82 5.46 and Salary Workers 100.00% 62.21% 30.67% similar effort conducted inPercen May ta1979 Ke Diand strib fuunded tion by Withthe in Department EarninKs Grou ofp Labor Nonagricultural on coverage aWage nd vesting 63,833 43,723 26,143 wage gap. A large TABLE body 5:of Cec UMUL onomi ATIVE c liter DISTRat IBUT ure ION tries to explain the less than $20,000 59.54% 52.39% 44.85% l35 esstothan 44 years $25,000 82.88 1,364% _ 43.0 76.418% 1740.2 ,681 1% 68. 18.51 12% protection. less than $25,000 Benefits have 82.88% been Employment a sub61. ject 47%%of Covered collective 47.48% %bargaining Vested40.36%for many Notes Supplement employeesal vest Securin itytheir In WOME come Npension AND (SSI). MEN, plans MAY as 1979they AND grow MAY 198 older, 3 probably accruing 42 broken and ageentitlement, 25 down to 64 into only funded two com inplement conjunction ary componen with tthe s Department for the firs oft Health time: and(i) con core the didsimost snot tent of know the severe pulb Hwhether aiycre1983 cession polic they pension y sin were land cemasupplement entitled rWorld k, the WartorII. lies ecfuture ent indepension faicit series crisis benefits. of questions suddenly ha about s worke towards bsurvey. around to massive eandhigher rexplain sSala12 those earning ry unemplo Pension tpercent Workers othe service-rel the yment less change benefits exin tent than and ain ted 1983, low th are $the 5,000 atindustries economic 100.00% found suggesting laid-off coverage a year to growth. be whi workers rate. do gre br chonot aadly 68.50% ter experien Variables This were meeemployee based t cresulted ERISA rehired ed and similar emplo 4participation 0.95% inform can as yin ment be taato he tion expected decline growth. those recoabout veryin in industries TRANS cLump-sum overPage ORTATfor Ientitlement Ofell N the while ERISA 1,4 those among 54workfor publi for the cce se aother had ctorrea half employees chedheld (82) 74 constant. pis ercne ent, arly 72.64although twice68.98 asonl high y 51 as proportion of covered workers earning less than $25,000 also increased from 70 and existbence y nearly of w20 ageOpe F rdi centa EMP ff LOeYME ren geNT tials poiAnts ND between COVERAGE for publmien BY c-sect EA and RNINGS orwomen. wor a kers.LeaviTnogtalthese vested every age group is far below the proportion of vested benefits provided less than $25,000 76.48% 71.98% 66.67% Although the noncorporate self employed may establish a Keogh plan, more than digit TRA 45NSP toORTA unemployment 54 oIOyNears Chief, St had 10.8 atistic 9disappe a7l959.aAn 57 red alysisin 49.52 51 Branch this .00 country 40.72 10,62a7fter 59.7the 4 30 Great .57. 2594 1980-1983 Depression Public Sector 13,072 77.33% 57.50% 19.45% Nonagricultural Wage 61,586 40,702 20,476 to Employed to Employed 5and / Cthe hangesSociin al the Security 1970 and Administr 1980 aCtion. ensuses The mean EBRI that/HHS employment survey par totaallels ls forthethe (age ex-r25 ailrto oads) 64, working unanswered FOR questions WOMEN ANDaside HEN, INtabl THEe ER5ISAprWovide ORK sFORCgre E, ate MAYr 1983 detail on the Office of Research and Statistics l55 esstothan 59 ye $30 ars ,000 89.7350%2 56.90 85.39% 841,.25 723% 79.77 39.9%0 years less (ex-rthan ail androa$40 multiemployer ds),000 89. agreements 75% in 73.40% crease the s60.35% cale economies51.58% of pension AUTHOR'S BIOGRAPHY 43 Human benefits and Sala services. ryat Waorkfaster ers rate than 100.00% they would By on66.09 their % own. Furthermore, 33.25% more and en standards. totiprovide tlement antoimport future ant retiremen income support t income for millions and (2) of entitlemen future tretirees. to a lump-sum pWomen pensions, lI000 aced Mayare hours pen 1979 GaininK sthe ioor nsdegree CPS more on andth ofe nonresponse thefiriMay ng li 1983 neremained . CPS Someare substantial. resear notcher strictly s even comp preadricte able.d a In pension th table gthe Employment aat inedratio in9momen coverage twere heof tgro um. private covered wfound thandinse entitlement. to workers cthe tor. influence service-related to Within employment These thetheextent rem ERISA between sectors ained of workvirtually pension Mawas for y c1979 e,robust coverage more and unchanged May in thanview 1983.1_!1 asone-fifth from well of the /the as per benceent fits ofinc covered rease gr workers adually anti with cipated age prbenefits oviding agrtearetirement. ter protection as workers The di per st cent rith but ird iin on p19a7nel o9f ear toofn7ings 2table percf ent or1 the sh inows ERISA 1983.the wo Furthermore, drikstributi force.on Wthe omen of proport employment, are imo onre of than pension workers by private-sector employers. The utilization of 401(k) plans among wage l95essperth cent an $30 do,000 not, probably85.89% preferring to 82.8re 6%invest thei7r8.85funds % in the growth rles a60 ns to its than 64course.) years $35 Soci ,000 al Security While97.98 the 139 Administration % unemployment 68.13 97.10% rate eased 96.00 2,834% to 7.195.51 37.13 percent % by June less than $50,000 97.98% 92.76% 84.87% 79.98% Tot Leass l than 25 1,092100.00% Dr. Emil45.6 y S. 7 Andrews* 56.15% 28.25 32.52%17.43 age 25 to 64, working Women (000's) Men (000's) Percent Female May particular, 1979 effort the but 1980 addsCensus new information corrected aonprevious lump-sumundercount, benefits, so individu that awere l CONST ERISARUCTIO WorkN force 2,130 56,153 (102) (295 40,441 ) 55.25,326 75 44.56 four times as likely to earn less than a a 1,630 20.30 less than $35,000 97.13% 96.48% 95.23% Total Earnings 100.00% 100.00% 100.00% 100.00% CO65 NSTyears RUCTIONand over Directed9.04 interdisciplin 8.24 ar4y2.08 st3a1ff.07 with 26.79 advanced 24.07 degrees in pro ToI000 tval isioEnhours arnby ingsor banding more 1979 together 100.00%1983 smaller 100.00 contributions 1979 % 100.00 1983 within % 1979 the 100.00 Taft-Hartley %1983 TABLES The more second women ha group ve become consists entitled of those to pensions workersin with their sufficient own right aslabor they force enter 25 to 34 years 3,723 73.66 46.56 27.10 pWhile ayment.the The number addition of covered of luworkers mp-sum benefits increases increases for both years the tousing tal vesting the imputed rate di May minut the 1979 ion197DOL 9o/fCSSA PSpolbenchma ic pension y csked upposupplement rtto for the rlatest eti toreensure ment Censube s, comparability. fore the the population current Thetotals bal three ooninwgould core The The of industry, (age all per Re25 io cession cdoto vered earnings b64, etween aryworking publi Seand the cctors--The emplo to surva eys yees lesser 100.00 was recessionary expe %nextent, octt oto ne recei of age 72.02% secstr tors vand eongonl geographic ein ycocnlude a om4i5.10 clump-sum %mgrowth region anufac .benefi turing, ofReathe tl, nea recessionary r retirement conditions. age. A compaIn risabsolute on of totnumbers, al vested millions benefits of withcovered utilizati workers on Public acoverage expecting nd salautilities, ryand future workers vesting retirement communications, isDistribution across comparincome abenefi ble of tsagroups: tmining Women ver (excluding y yand in oungother Dist wholesale lump-sum arnd ibution words, very ditrade old of stributi theMen arges atio oexhibited ns)to of all and Total Earnings 100.00% 100.00% 100.00% of their own company. 1984, the EBRI/HHS statisti May cs, 1983 demograph CPS ypension , psycholog supplement y and ltook aw. pl Developed ace in mid-1983 data for $1-4,999 Table 1 Employment, Cover 100.00 age and Vesting: 24.29 Distribution3.57by 8 E35 RISAto Work 44 yea Forrsce 3,656 54,363 82.89 38,057 61.50 20,027 21.39 Growth Sectors be somewhat higher. That implies that employment increases may be retirement accounts (IRAs) and section _01(k) salary reduction programs. "_ i000 hours or more, one ERISA ERISA WorkWorFor k cFeorce EARNINGS Employment Coverage Employment Coverage studies on disaGbilit rowth y, Sect health ors and mortality. Advised Director plan.l/ : attachment $5,000-9,999 to accrue Earningsmeaningful I00.00retirement benefits 37.51 if covered 13.20 by an employer the 4( 5ageto labor 25 54 tyoeforce a6r4s, work iningreater g 2,5521numbers. 00.00% 83.32 Finally, 70.01the % 68.vast 33 majority 36.841%4.99 of employees The by over survey,I0 conducted percentaNon geby agri poin the cultur tBureau s alfor Wof age thethe and private Census Salary in se Workers cMay tor 1983, and represents by nearly a20 The de The Gross While variables, country. ficit. reasons slightly MayNmany ation 1983 Inathe lbehin other 1980 EBRI too Produ increase d/WHHS iindustries lliam these ctrobust CPS expanded in changes Grae pension coverage and bn were erat are semployment taffected supplement a less tis ned ot greater easily th inanAbyHistory aexpanded decreases aanalyzed. 1forvariety per1983 cen oftthe Retirement, than of amay The nnu definition special al1979. first berate app slightly Analysis fof between actors, arent .... qBecause tr Imputed Cuyear overage esti ansportation ons of data the tenure rates inMay onthese (ex or future posted 1983 cmore) luding and EBRI benefit inr/aHHS oilro tMay herreceipt aCds),6 PS 1983 surveys /pension were increased constru ofadversely supplement ction this the number atnd yape was ffected gover aof conducted renment. workers by on the coBetween ver vested just a1982 ge Table rcate ompsared fr 4 om provides toIRAless andcomparative _th 01a(k n) one-eighth plansstaitisti ndicactes of s on those that cover cove caovered ge rageandprunder ov vesting ided priv byfor aete-se mpmen loycetor rand workers earning were added within less to than a that particul $25,000 sector ar inincome calone, reased brataking from cket 63 who upperare cmuch ent employed, of of all the workers covered loss suffered inor 19 vested 79 to in declines vesting rin ates coverage provided ratesbydespite private ansector increase pension of nearl playns.600,000 Private in the plans number ERISA Work Force _'_ on proposed and ongoing statistical and research projects. i $10,000-14,999 Table 2 Cumulative Distribution I00.00 of Emp5lo 7.93 yment, Coverage 30.76and II _! " before 55 to the 59 yea beginning rs of the 1,159recent robust 84.05 expansion.72.43 11.62 .: I000 hours or more, one s:i PUBLIC UTILITIES 811 159 129 96.06% 93.11% .... ..9 .j 1979 underrepresented. Thus the recessionary impact on coverage may be Total Employees PTot Tot UBLIC aall EEmployees UTILITIES mployees 14.95 54 3,833 ,36313.96 43.68 38 50.3 ,058 %4% 42.58% 425 2,458 ,480 85.42%20,02 21.96 781.96% % $15,000-19,999 I00.00 71.92 44.83 pension benefiting 60 to 64plan. yeafrom rs Vesting This employer group by 664 Epension arnings is referred plans 88.07 continue to as the 7to 6.56 ERISA be middle work11income .51 force and workers is - The follow-up yeaviews understated. c of tenure in to this an orearlier The statement more) effect May are of1979 this those effort undercount of funded the author onby calculated theandDepartment do not ratesnecessarily of should Labor be '_ per Employment 1979 suggests centage that points more 36,704 high for pu salaried bli 40,015 c sect workers, or 48, wage 477more and employees 4salar 8,199y workers. 4in 3.1%government, 45.4% Comparable and conundrum pa vesting the coverage rticip secA ond ation tcorates entury isqua inthe cand rlude tein raissue future fter government of workers 19 retirement of 7benefit 9 declining expe and were cting entitlement.2 thebparticularly ecse ame coverage clump ond anquarte /sum impaomong depressed rdistr rtant of ibu nonagricultural ti instrumen 1983. onsin comparison Furthermore, as t well of wage asto and the the '_-9 women. 1979 employment afor recession fter retirement and the Women 1983, in (see 1982several mtamost benefits ade recessionary ble considerable 6). of ways. these for The First, trough, both higher indus employment tyears ries many publi thec-se workers exhi but effect ct gbaor ited ins did of in rabetween not te strong manufacturing the refle greatly worst ca1979 ts cross-the-bo the alter cyclical andwere gre1983 aater rd the on of pin 67 manufacturing. lans co aper vered pension is centbroworkers ade inplan r 1983. than Many to in that the those service In tot se other lindustries. aec l sector ted number words, by icoverage of ndpension iIn vidua employed, the lsrates cmining overage thems covered ewere lve and scont , or public remarkably inues vested utilities, toworkers. protect stable. provide considerably greater vesting for workers between twenty-five and (O00's) 22,970 15,207 31,393 22,851 The (O00'sc) omparative findings of the May 1983 and the May 1979 surveys are o Director, Contract Research 1979-1980 $Total 20,000-24,999 Employees Table 3 Cumulative 54,36 Distribution I030.00 11,900 of IRA79.a3nd 4 Spous 2,37a3 l I5R4.8 A 5 1,413 13 minimal. Covered 65 yearsWorkers and older 20,355 22721,015 67.131,66 7 4 59.25 28,515 39.1%7.9242.4% reflect those of the Employee Benefit Research Institute, its Trustees, Analysissocia ofl theanddistribution economic of policy coverage , we and are vesting preparing by earnings for its category COMMUNICATIONS 1,200 277 215 92.04 88.75 Total Employees 49,736 36,890 18,941 25 to 34 years 1,404 33.75 15,977 11.87 Wi COtMMI;N (000's) hin IC the ATIONS recessionary President's14.39 Csectors, ommission 13.08 deon clines Pension 59.56havePoli 58. taken cy 49 pla8c7e.07in average 84.02 tenure, earning 1979 less than $25,000 a year. All these benefits are observed in a system composed To (DOL) tal Vand ested ofthe employees PSocial articipaation meeting Security 10,884 by ERISA EAdministr arningsparticipation aation (SSA). 17,82 standards. 4 The May a These 1983 37.9% survey workers members vesting Consumer or gaPri ins other ce areIndex staff. foundincThis for reased the statement aERISA t an work does average for notceannu represent asal well. ratean Furthermore, of attempt 8.2 pto ercen aid the t more downturn persons disappearan in fourworking cedecades , again icnanilarge nbea acnontext afirms lyzed. esta were The blished cyclcial among bythose the behavior needs without of of coverage reported salary declines those private relationship In layoff addition aworkers nti lowering sector. cin ipatin to between employment gduring the service Whereas future overall the a period or sector two the pension coverage signifi years. government ofgrowth cincreasing benefits. ant rate. Concentrating and downturns coverage Second, aemployment. The contraction proport rate within this on iMay on fell effect Asminajor 1983, table of 5.1 manufacturing, may vested cpercentage om 8the have ponents. shows, data been growing Ci prev middle vili alen ancin eby cEmplo omeof3.3 yment emplo contributory million yees even nonagri plans as 9c t5hultural ,372 whi e in chcome maywage distribution be54,ca 3and 7shed 4 salary ouworsened. t upon 28,16 earners. 8termination Women'sof significant These Slower statistics pension declines coverage clearly in the show growth extent thewould pre ofvalence be unionization, expected of pensions during combined among a recession. with middle-income a shift New sixty years of age than workers provide for themselves under 401(k) less thought- (O00's) thparovok n $5,000 ing. Employment 4.84% of nonagri 2.10 cultur % al wage 0.76a%nd salary0.35 workers % (the The less 35 AKKreKate tothan 44 ye $5,000 arsFiKures 1,262 2.50% 44.1.05% 42 11,4 0.61% 79 0.54% 19.57 Responsible forERISA $2 million Work Force contract research program. Directed $25 Workers ,000-29,999 Table 4 The Status ofI00.00 Coverage and Vesting 79.14 among Women 55.26 and 14 orindicates hindercapthe itthat alpassage apensions nd with of anythe are billabroadly cqu pending iescencdistributed ebefore of Congress. most among Americans. lower and We middle 6MINING / Following past surv660 ey practices, 177 respondents117 were instructed 88.73 82. to72 exclude (All employees & self- 100.00% 57.01% 29.53% less than $I0,000 28.56% 18.32% 7.01% 3.88% MI less 4N5ING tothan 54 ye $I0,O00 ars 11.116.21% 4 74190.27 50.96 49.67% 1.87 28.5786.54% ,781 80.40 5.98% 30.55 76.57 unionization less than $5,000 andMen development the exten 2.50% tof ofthree employmen 1.11% surveys t in on 0.88% largepensions firms. 1.30% andShifts wealth. in $are with 30,000-50,000 between strong twenty-five financial reserves andi00.00 sixty-four enabling years it 83.91 to of weather age who the61. work worst 57 atdepression least 1,000in Workers civilian Entitled Employment 6,790 8,018 95,372 14,60953,445 14,199 31. 22,633 7% 36.1% most goes ameasures responses ge Social profile beyond of the the Security inof the decline 1983. cost entitlement scope andof The inRailro ofthe the reason the to adnumber downturn previous fuRetirement tfor ureofthis retirement for study, covered shift from pension however, nonagricultural their in income protection. nonresponse responses. by char asking ts aworkers has While sadditional teeper notfalls the pbeen ath Alth indicate compounded oughexpe these that cted to the three the tooextent imputations mu questions ch th from at unionized aret ppear increased iremen straigh t.emplo the tWe fyoment rward, bnumber elieved responded many ofreti sur workers rement to veythe respondents erecession xpecting bwGovernment employmen workers. points changes oetween rke employed) rs tfrom earning Mtook .ayMore is19 93.4 place the 79than lessto and onl inhyth 88.3 athe alf Mnase yc$the tor distribution percent, 25,000 1983.work withaAlthe growth force, tye hough arof coverage isage, in 51 pri raiemployment cpercent sed es tenure rate modera two and for of percent tedand all eall arnings ac ge considerably over non private aapoints gricultur ge. within sector Itathe lbyis employment employers would gains be wereless transl likely ated to intoprovide improvements a pension in cin overtheir age and compensation yesting. tow aChanges rraard ngemen smaitller ns. coverage companies, Pension and pensi plan may ohave n ves entitlement ti led ng torathe tesbetween decline exceedthe in se May the ction 19 coverage 79401(k) and rate. May l se less es cond s t thhaarow nn $5 $15,000 on ,000table 8 for 60.81 1.86 ea%ch% year) 51.51 incre %0.82 ased% by 323.56 million %0.26% employees 16.77% between less 55 tothan 59 ye $15,000 ars 39.46% 281 58.3 30.70% 5 25.45% 3,919 23.82% 41.21 less than $I0,000 Constructed 16.21% estimates of8.86% pension cover4a.18% ge and vesting. 3.09% $Pr 50ivate ,000 Table and Sector o5verCumulative27,550 DisIt0ribution 0.00 60.1of 1% Emplo 84.9 yment 0 48.2a1nd % Coverage 68.50 11.90 by % 16 to (AllFuture employees Benefit& self- 100.00% 56.04% 23.73% Emily Andrews would re earned juvenate her PhD and in stabi economics lize thefrom teacthe hingUniprofess versityion,of Pennsylvania the FINANCE, income workers. INSURANCE In 3partic ,444 ular, 76 581percent of435 all nonagric 71.94 ultural 72.42 wage and less less tth haann $ $2I0,000 0,000 81.28 14.33% % 76.28%8.74% 43.35% 5.06% 36.40% four decades. les 60s totha64 n ye $20 ars ,000 59.54% 138 68.65 52.39% 46.9 2,302 8% 44. 38.32 85% less than $15,000 39.46% 23.52% 13.77% 9.39% unionization FINANCE,INSURANaCE nd firm9.7size 4 are 8.23probably6.78a resul 5.10 t of layoffs 56.45 in59.21 larger more Nhours ot repo annually rted and have beenI0with 0.00 their employer 27.23 for one year 13.9or 4 more. _ than employed) that exhibited Earnings by to for talWomen vested and benefits. Men As a consequence, the addition Dr. _questions identified. recession retirement /& RAndrews EAL Olivicahur ESTAT caabout benefits hes, dversely p S.Eresen Suffice Mitchell tland lump-sum, y by ait hffected the olds 6.7 to andfa say million the cEmily distributions, tories; plan that positi growth, to S. aolthough naspare Andrews, of total pensions Resear us individu more ofthe c"Sc 28.9 hwage astill aAss le ldistress million oand ciate retirement Economies covered salary workers. of at the an aworkers in majority accounts Empl Private Within oywere ee among above appear 1982, ERISA industries through workers the the work tolayoffs have sequen 68 only force under per cdifficulty eslipped crather ent between twenty-five of rdouble athan te 3.7interpreting the posted percentage wage digit two years cuts. when sur inflation of vthem ey points onl age Third, years. yand and future from and provide sixty-five employers severe This 68.6 pensinappropriate ipreliminary to onrewithout 64.9 cyears ess recieip onpercent. tandawould analysis answers is pension older.be In The Nonagri amongnumber cthose ulturalaof ffeWct fem age edaleby wage the recession, and85,181 salaryhowever, earners 54,079 sinccovered e weak ; by e28,00 conomi a 5pension c growthplaand n Nevertheless, 198 Furthermore, package; 3 surveold ys aemployers in re the 1983, also emploinvestigated ywould er coverage pension be less rates inlikely system order for to to three diinstitute de d termine of not these suffer athepension four cycthe licaindustries if l finan cthey osts ciadid l pem artici ployees, pationearns ratesbetw byeenover $I015 ,000 percent and age $25,000 points perfor yeathe r. EARISgAreawork ter pro force portion less than $15,000 36.19% 28.72% 21.15% c_ the 1979 and 1983. On the one hand, pension coverage did not keep up with less than $25,000 76.48% 71.98% 68.40% 66.67% Tless able than 8 presents $20,000 data 5on 9.54% employment, 41.07pension % cover 28.63a%ge and future 21.99% benefit ERISA Work Force __ L & REALo ESTAT Senior E Economist 1978-197_ ,_ Benefit 25 toTa34 Resear bleyea6rs ch Vesting Institute. among 9,883Pre Nonavgr ious icultur 46.81 positions al Wage include.those a3nd 2.33Salary Workers of14.4 Br8anch 19Chicf 4.'%. _ _.. -: Multi-Employer Pension Systems", Industrial and Labor Relations Revi_7, and Salaging ary Workers bureaucracy; allow 100.00% the payment63.o4f9% lower sal 32.88% aries; v_ salary earners covered by a pension earn $25,000 a year or less. Similarlyf- less less th than an $ $25,000 20,000 92.30 57.18% % 90.23%50.59% 64.70%42.76% 59.77% SOUR lessCE:thanPreliminary $25,000 Employee 76.48% Benefit57.5 Resear 8% ch Institute 43.61% tabula3tions 8.34% of highly unionized Pensionplaants. nd Welfare Unionized Benefitsfirms Program appear more_ ready to reduce costs 35 to 44 years 7,779 63.07 51.38 11.69 (IRAs) and deferred and the compensation ERISA Work plans Force under by Agesection and Sec401(k).I tor / aof Publi tNonathe lump-sum gJuly ri c-se cultur cSoci 1981, tor alalbenefits r pp. aSecurity tes Wag522-530. e oftotfuture aAdministration lly 85,181 cbenefit hanges our entitlement and con 52cL,eption 019 abor within Economis of the the t21,399 degree ERISA with of work thevesting U.S. force covered cons from of ithe dered. time distribute in labor 1979 to In time. force than fact, workin and This in 1983, 77the problem declining perusing number cent has the ofindustries ofbeen imputed those vested recognized expe responses, workers and cting in by expanded. anonly the other economy gap lumpanalysts inPriv sum coverage ate of The PROFESSIONAL high the expe indicated particular, plancmost ted ERISA infl would ato perplexing tion work a hthe ahdownward ve ave undou force federal a been mba6,401 tedly rked question the shift unlikely government effe number Per influen in ccentaKe arising t 1,578 the on of cto edappears every workers structure Distribution institute from the sepcthe ubli to tor looking 961 hcof EBRI a's one of veAcross the /the desire hired HHS forward during _eterminants ecMay EarninKs onom 64.96 more toyato .1983 redu workers period a Groups cpensi 63.95 CPS eoftoapension of nxpension outside aesrose high and in ofcrethe asedrecession by 660,000 on workers, the pension whilesystem. the number At theof time women ofentitled the survey to future the between of diffi not pen cult ha sivioethirty-five esn one. cove experien ragFurthermore, e a ced nd is di fifty-nine rec bytedthe some towa yeSoraacia ds rs rgument lof these Se age. curity could middle-income b_ system made iwnor that ke rers, cent lower howeve yeacost rs. r. surpassed 80 percent even during this recessionary perio_d. less less than than $$25 30,000 ,000 96.62 74.%22% 95.6169.9 % 5% 77.89%63.34% 74.33% th less is th trend an $30, and000fell by 8nearly 5.89% 2.5 million 82.86% workers80.pr 08% imarily 7through 8.85% a drop in receipt for theU.S. five May Department 1983 employment EBRI/HHS of groups Labor CPS pension in Maysupplement. 1979 and May 1983. The figures PROFESSIONAL 7.63 6.87 12.22 13.04 42.66 41.81 45 toTable 54 years 7 Utilization5,7%5of 6EmVolunt ploy-ary 70.11Retirement % of 58. Programs 72 % among of Tot 11.3 al9 21 and Salary Workers 100.00% 61.07% 25.12% Dep Employment SERVI artment CES that,of Lin abor.ma18,8 ny, 47sometimes 22,970 lengt30,888 hy periods31,393 over the 37.9%last42.3% Non 70 apgri erccent ultural of allWage vested benefits63,201 belong to non4a3,907 gricultural e26,009 mployees less than $50,000 99.66% 99.54% 95.23% 94.44% less than $35,000 97.13% 96.48% 95.71% 95.23% AlSERV eMiddle ss Ithan CES Income $30,000Benefit 85.89% 70.96% 57.81% 50.31% through temporar Designed y layoand ffs managed duringMay a1979recession Current Popul rather ation than Survey through pension 55 to 59 years 2,708 73.13 65.38 7.75 Covered Workers Priva12,972 te Nonagri15,207 cultural W23,918 age and Sal22,851 ary Workers35.2% by 40.0% provided fell distributions from century, by2.5 employer eamillion rn has less fpensions. ailed workers thantome $25,000. employ ntto under all who Cove 150,000. rwanted age Coverage to work. Vesting incre In our ased to 53.9 8supplement pension sector /coverage of unemployment andFin the Salar alcoverage Civil cover ynot findings findings Workers aand rel geService raated ltes and will agging isfell to entitlement. be Retirement whydifferences demand. presented less coverage 100.00% strongly System. Plan in gains Itingrowth Emily is the than among Although probably compositional 69.47% S. public among Athe ndrews, employers specific ERISA sector a result The work 4shifts rates 1.1 ChanKinK recessionary without of 5%force suggesting the in the did coverage complex Profile work not and by government aver5.3 age million over spending. one- tothird 25.3 million higher than workers. private-se Thus ct 63orpercent rates.of These coveredfact workers ors leof ad unemployment retirement Between Covered wo 19r7benefits ke 9 rs rate andwith was 1982 i_u nmped at thos Soc I0.I by eiaincome l1.2percent, Sec million. urii cate y gojrust ie trust s sicxonfund smonths titute assets after nearlfell yth59 e fro business permcent$24.7 of employers, those without pensions, may find it easier to expand during a To less tal th Eaarnings n $30,000 100.85 00.%17% 100.00%82.57% 100.00%77.45% 100.00% Tot a coverage Number al Earni ofam ngs oworkers ng emplotoo yees 100.00 small under % for rates age100.00 twent to% be y-five calculated 100.00 and % reli sixt1a y-five 00.00 bly. % years and range less tha from n $50the ,000 broadest97.1definition 3% 91.8 of7% employment, 83.65% that of79a.ll 05% civilian supplement. Conducted research on scale economies in pension 60 to 64 years 1,424 70.98 65.91 5.07 Total Vested a 9,427 a 16,053 a 37.0% ea Norni nagricultural ng $25,000 Age oWa rgeland ess.Type of63,2 Program 01 42,576 19,836 WHOLESALE of Pensions current TRADE diffi in Americ c2,682 ulties, a, (Washington, we assume 403 that DC: byEBRI, 138 reversing forthcoming). the 68.36process 63.26 age 25 to 64 only less than $50,000 97.43% 97.07% 96.09% management. across-the-board WH Tota OLES lALEEarni TRnADE gs wage 9.60 cuts. 100.009. %In45May 11983, 00.00 15.38% those,l 13.82 a1id-off 00.00%39.9workers 7 100.00 36.99 were % either Tot Workers al 100.00% 100.00% 100.00% Inandparticul SaTa lary blear,W8orkers Employment, using the May Cover 100.1983 a0ge 0% EBRI and /HHS Future6C7P .37% S Benefit pensionEntitlement supplement, 31.39% we 26will million Anature that cyclical sharp during and of workers ec downturn. the onothe mic dismantling pension in downturn do1983 wnturn system orthe the 61 isitself. costs percent unlikely edifice of of coverage toall of lead nonagricultural retirement, slipp to roabust ge were planwe employees. less grocwth ase n.vere Asforthe Nonagri to bforce. should illion neacrly ul This accelerate to turaa$may l22.25 1Wrepresent age percentage bi during llion the the andpoint current effect would 59,21spread 7of have expansion therun between recession 42,252 out to had apriv on rate ainterfund te pension more 25,512 sector in growth. transfers keeping and publi with not c keep all growth ages paceindustries, were with eligible increases suchfor in as retirement construction employment. benefits. and mining, If the also5.5 posted million largepersons coverage in pcycle Inension sum,trough. cne ove w rafindings ge. Never Futrt heless, fhe rormmorthe e, employment May almost 198362EBRI pgrowth er/cent HHS Csince oPfS all pensi 1979 voenstedsup among wo plemen rkerthose st fall Coverage SOU TotRaCE: l Earnings Prates reliminaheld ry virtually Emplo100.00% yee Benefi constant t Rese 100.00% in arch theInst financial itute100.00% tabusector lations (finance, of older. On the other hand, the number of workers who anticipate benefit employees plus the self-employed, narrowing to the ERISA work force, those Public Sector before and 10,507 after the R84.90% ecession 64.20% 20.69% Workers age 25 Entitled to 64 only 5,778 7,065 13,164 12,962 30.5% 35.3% reinvigorate an economy that has lost its fine competitive 9RETAIL /andMore Salary TRAD ambitious E Workers imputations 5,833 fo 100.00% r 503 those individuals 71.35% 182 who were 46.89 43.08% eligible 45.96for the the May 1983 EBRI/HHS CPS pension supplement. SOURCE: Preliminary Employee Benefit Research Institute tabulations of o Labor Economist 1974-1978 collecting RSOU ETARIL CE:TRADE Preunemplo liminary yment" 8.Em 49plinsurance, oyee7.4Benefit 9 or, 16.3 Re7sif earch 1reemployed, 4.43Institute 42.86 working tabulatio 45.74 at ns smaller of $T1-4 ato ble ,999 Future I provides Benefit information 12.4 on7the distribution 5.14 of benefit 1.30entitlement from address Employees twoanti issues cipate ofthepolicy receipt interest of lump-sum to thebenefits Subcommittee in sever on athe l ways: equity (I) and as private NonagricTable ultur sector al 9 employees. CyWcalge ical Changes58,009 in Employment 40,830 and Coverage in19,522 the 29 IRAs eaconomy long survey and edge. run heabut ded Earninss--The expansion This did toward notispath. respond the thecumul re mirror-im cession ative to any ary age distribution oftrough, of the the pension emplo historic ofyers supplement vested would assubenefits mption be questions unlikely by were to the The se age ctobERISA r2ulk 5 to toof twork a6l4,employment vesting working force who rin ates expect the . re Puclump-sum bession lic asec ryto benefits rsecvtors esting are of runs the addedecaonomy to t jthis ustis under sum, typified the 85 By workers taken wshow rate ithin contrast, th pl losses atathe cmeeting e ves $1a0 nd tmale in ,ed 000 had ERISA percentage benefits empl tothe$25 oyment standards 1983 ,000for terms, So pedged eci remaplylo led eayrdSe er the own cra t urit onpgby government le. yan ans278,0 Amendments increase exceed 00 empl figures prof eviously o not yees over been are inone re pparticularly the assed. por million tfed ace This of insurance, SOURCE: Prelimin and real ary Eestate), mployee Bene in fithe t Rese services arch Insti (professional tute tabulations servicesof and entitlement at retirement increased by over 800,000. In other words, even the May 1983 EBRI/HHS CPS pension supplement. employees meeting Assistant ERISA Secretar standards y for Poli forcyplan participation. This latter group not included. the May 1983 EBRI/HHS CPS pension supplement. 25 to 34 years 3,184 78.08 49.72 28.36 $5,000-9,999 and Salary Workers ERISA Work For100.00 19.08 ce by % Industry 12.13 70.39% 7.33 33.65% I000 hours or more that retirement is a powerful and inexpensive instrument of B*USINESS Portions & PER- of this 3,184 testimony were668drawn from 225 a forthcoming 33.87EBRI study, 33.83 The a Percentagteshe Maexclude y 1983 4.8 EBRI % /oHHS f menCPS and pensio 3.1% nof supplement women whose and earniMay ngs 1979 are less-unionizedU.S.firms. Department of Labor BUSINESS & PER- 8.68 6.27 13.02 10.80 34.74 31.81 $c10,0 ash 35 00 to-14,999 outs 44 yeaof rs their own 3,261con 22.20 tributions, 88.22 2(2) 1.80 as66.30 distrib1utions 9.87 21.92of defined economic three SOURCE: age 25Tapberspe to le Preliminary costs 64I0 c,tives. of working Cyclthe icalEmployee system: The Changestop Benefit in Employment panelReseashows rch CharInstitute acterist the icsabsolute tabul of athe tions number 30 of of Between earnings In SONAL particular, SERVI so1979 cunder iaClESand recemployer onstru ev1983, idence ction. coverage pension suggests A new pl rose ansmthyth aby tcanrepl 2.6 certain beacmillion es compared the employees old." employees to themisinterpret cumul foratithe ve ERISA the An ChanginK Imputed per by add Statistical cIndustrial pension ent to Resp cof Profile ompens coQuirks overage nses--A cAnalysis aover tionof age Pensions rfurther acosts tes and of th byexplan ain over t instituting America ofa70 tithe onpercafor ent. nd the newfrom the priv pension Employment shif aEB teRIt Issue se inplans ctor the and Brief stru where just coverage ct#33, ure pnone asses "New of losses were th60 e number ERI workers SA Woof rkcovered ftotal orce vby ested a pension workers 5plan 0, rises 562 ortoa30.8 total 37,80 million 3of 38 ormillion 24,494 76 percent employees. of all business vesting unfortunate the striking mostand rat in se esvview personal sere itbuation y of re I0cession pension to services) was20 aper sin coverage dire ccent eand ctWorld when in rates result retail War lumthat p-sum of II.trade. sluggish traditionally dis Pension tribThe uteions cprote onom number have iccation rebeen growth ofadded co for vnearly ered with men not reported. DOL/SSA CFS pension supplement. though aggregate coverage among wage and salary workers fell after the 1982 a Percentages exclude 9.0% of nonagricultural wage and salary workers is most likely Prepared to represent cost es workers timates whoforwill legisl haat veionenough on myears andatoryof service retirementto $a15,000-19,999 SO 4I000 5NPAL eto rcent hours SE 54RaVIC ge years sEor S more exclude 9.9 2,3%6516.32 of nonagr 86.icultu 39 19.89 ral w I7a1.3 ge 6and 21.28 salar1y5.0wo 3rkers ERISA Work Force by Industry the May 1983 EBRI/HHS CPS pension supplement and May 1979 IO/ There is also some evidence that a change in the wording of the key Survey Findings on Pension Coverage and Benefit Entitlement" (August 1984). (age 25 to 64, working 100.00% 74.77% 48.44% and 4.1% of the ERISA work force whose earnings are not reported. and 4.1% of the ERISA work force whose earnings are not reported. and temporary disability insurance. Initiated and planned $20,000-24,999 55 to 59 (I)years Does the existing 1,08212.81 system87.81 of tax 17.22 incentives 76.29 ensure 20.43 11.52 that nonagri cFurthermore, Eon RISA tribution cWork Table ultur DOLaFor /lII SSA pl cemployer eaEmpl nworkers CPS oyment, balan pension cpensions es employed, Cov upon supplement. 49 erage ,736 sep hcaaovered ve nd aration Future notor 36,890 suffered from Benefit vestedthein Enatitlement firm, afinancial 18,941 publi orc (3) or crisis priv 3through 7 ate work distri previously coverage universal. Evencoverage bforce ution though question using availa question the of bexpansion IRA le. the andmparti aimputed yrespond Similarly, chave ip of ation coverage data, led as if to employees using compared they awas decline twere anot bles who toproportion asked in had an 2 reported and increase suffered about a 3.l particip Ta to coverage. bof le rethe aljust 3aexpansion wage tion, shows The over losses i.e. 1983 I.I of Publi were covered SOURCE: cper to I000 overage cbenefit ent. csignifi hours poli employees Preliminary equ These cycen or ant. ation tmust imore, tlement higher of Led not and all one Emplo by vesting be athe ages tcyee onstruction cretiremen ondu cmeeting overage Benefit rcated tes, t.by ERISA however, industry Resear raFurthermore, the te participation cperpetr may h mask de Institute lie clines ation one cin ompcaof har standards. of risons the tac aover bul myths. teristi distribution ations with Iicpe Tod rnew of cent aof y'sman ageof y (Coverage among all nonagricultural wage and salary workers totaled 49.5 wage slippedratesthrough lagginglayoffs, prices dismiss over a anls extended and plant period. closings By cin ontrast, many ofassets the high held workers increased by a hefty 1.8 million employees. In other words, despite a a PercentaKes exclude 4.9% of employees in 1979 and 4.1% of employees recession, benefit entitlement remained strong. Nevertheless, because of the build an adequate majoremployment-based research conferen pension. ce onIn wtoamen ble 8,in thetheERISA labowork r for force ce. 60 to 64 years before and 616 after the 91.70 Recession (adjusted 79.29 for missing 12.40 SOU(RaCE: ge 25 pension Prtoelimi 64,nbenefits ar working y Emplo treat yee100.00 all Bene %femployees it Researc fairly? 74.1 h 7%Institute and; ta38.08 bula%tions of survey substituted the phrase "contribute to a pension plan" for "have a year of tenure the Mayor more) 1983 EBRI/HHS CPS pension supplement and May 1979 in 1983 whose earninss are not reported b Number of workers too small for reliable rates to be calculated. Selected articles and edited volume published by major $25,000-29,999 aI000 Data hours not available or more, data) for one 1979.6.87 9.21 11.04 cash-out pension provisions plan." for very small vested benefits from defined benefit pension whether during that 61 the pl the per they an. cent inflationar Mawere yOfof1983 the included ynonagri 88.2 EBR spiral cI ultu /HH million in rSalwthe ouCP ldSemployees non plan. pensi beagri uncowultur nilling Because using supplem al to wIRAs this eant ge agree a eleads aan nd rndtosaless Ma ltrade to ayry 19 th incorrect workers, a7cn9urrent million Part inf unreported comparable employment ormaof tiobased nDOL theto responses /cSSA te ausing econ that xhn planation oCPS log thesuffered the ypension in CPScoverage en the araw for bles by supplement. sur counts. the vSoci erate rese y.afall larcto In hers Security. Part edge in 1980, pension of aoff ndthe this Funded legisl from President's coverage greater at 75plans orspercent tcoverage are rates oCommission ca in designed reful despite Maygrowth ly1979 on points, million. these ) sectors all showed coverage rate reductions of 3 to 5 percentage data on voluntary participation in IRKs and 401(k) plans suggest that variety U bynfopr rtiuva nat tof e,elyfactors staan te industrial militating and local angovernment atoward lysis dlower oesplans not coverage, see continued m to including answer to grow. allthethe Acc recession questi umulated ons labor force expansion, coverage and vesting rates both declined regardless of is gradually augmented to include those on their current job for less than a university press. $30,000 SOURCE: -50,000 Preliminary Employee 8.23 Benefit Resear 11.71 ch Institute 14.7 tabul 5 ations of year Tofa(2) ble DOL tenure /What S12 SA Cumul or CPare Smore) atpe ive ns the ionDistribution rel supplement. ative cycof lica Employment, l costs of Coverthe age pension and 40 SOURCE: Preliminary Employee Benefit Research Institute tabulations of the May 1983 EBRI/HHS CPS pension supplement. $plans. 49.5 50,000million system and The over age were for Vesting profile acovered cross-se byofEacby lump-sum rnings tion 2.01 a pension offoremployees? entitlement the pERISA la2.89 n and Work is 28.7 the Forcopposite emillion 4.01 htoad thaacc trued found resulted from the addition of 1.8 million workers to the ERISA work force for expanding aco participation $cto 25,000 ompens ns Number id72eartion percent per of the employment workers yfa for ear responses, cts infuin bMay ture too eflies ocromparison esm 1983 paension pr the ll in opo using to the si coverage nbe gbenefits. toeffect st le imputed a7gisl tisti 0 question per atthe ca iv cent ll While responses, eyrecession chsignifi of appears asome nges. those cemployees the ant. had to Sevested naon number provide toremployment Pa might inckwood ofthe a covered c's hoose most by IIto Pension / Other withstand Poli the surcvMa yeys ycyclical contra 1983 of cted pension EBRI uncertainties. /HH with S coverage CPISCF, pension Inc. also Theto supplemen show pay-as-you-go allocacover tte and amissing ge MaySocial rates 1979 answers edging DOL Security /SSA to off the hold points. ings in Yet these in eacemplo h indus yer trpens y ithe on cfunds omplex were set $of 522.9factors billioninfluen in cing 1979 the and about employer whatpensions happened provide to pensiaongreco ater veragedegree between of the covertw age o surveys. for workers A number at of increases in the number of covered and entitled workers. year, those working fewer than 1,000 hours, those workers under age Previous positions include one year of university teaching and five years of SOURCE: Preliminary Employee Benefit Research Institute tabulations of a Data since on1979. firva sThese ize not include applicab calcul le ations to federof al prior governmyear ent pension employment. coverage CPS pension supplement using imputations provided by ICF Inc. economic research for non-profit institutions such as the Federal Reserve Bank SOURCE: Preliminary Employee Benefit Research Institute tabulations of May 1983 athe fter Maimputations y 1983 EBRIwere /HHS made CPS for pension missingsupplement responses and to job May tenure 1979 and industry. decline among inemployed the Typically, cover workers age manufacturing rate fromdiffered. the annu hasalbeen March considered Current aPopul highation coverage Survey and May 1979 DOL/KHS CPS pension supplement resulting from question refusals, $815.8 in 1982 despite a sluggish economy. While no employed workers lost i purely younger statistical ages than theissues y wouldmake provithe de for datathemselves. difficult to interpret and perhaps twenty-five and over age sixty-five, and, finally, agricultural workers and of New York and the Organization for Economic Cooperation and Development. the May 1983 EBRI/HHS CPS pension supplement. DOL/SSA CPS pension supplement. pension coverage among large and medium-sized firms from the Bureau of Labor Statistics' Level of Benefits Survey. the self-employed. a Pez_enta_es exclude 9.O_o[ e_ployee_ whose eat_in_s are not reported.