Working Paper: NBER ID: w25343
Authors: Nino Abashidze; Robert L. Clark; Beth Ritter; David Vanderweide
Abstract: There is little systematic information on the distribution options in public sector retirement plans and how annuity options are priced relative to the standard single life annuity. This study examines the distribution options of 85 large public retirement plans covering general state employees, teachers, and local government employees. An important component of the analysis is the construction of a data set presenting the annuity options offered by each of these plans and how the monthly benefits for these distribution options are priced. The analysis shows that interest rates used to price annuities vary considerably across the plans. As a result, retirees with the same monthly benefit if a single life benefit is chosen will have substantially different monthly benefits if they select the joint and survivor annuity offered by their retirement plan.
Keywords: No keywords provided
JEL Codes: H7; J26; J45
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Interest rates (E43) | Selection of joint and survivor annuities (G52) |
| Interest rates (E43) | Monthly benefits of joint and survivor annuities (H55) |
| Selection of joint and survivor annuities (G52) | Monthly benefits of joint and survivor annuities (H55) |