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Occupational pensions, tenure, and taxes

Published online by Cambridge University Press:  29 June 2010

ERIK HERNÆS ,
JOHN PIGGOTT ,
TAO ZHANG  and
STEINAR STRØM
ERIK HERNÆS*
Affiliation:
The Frisch Centre
JOHN PIGGOTT
Affiliation:
University of New South Wales and the Frisch Centre
TAO ZHANG
Affiliation:
The Frisch Centre
STEINAR STRØM
Affiliation:
University of Turin and the Frisch Centre
*
(e-mail: [email protected])
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Abstract

The occurrence in firms of occupational pensions is investigated with a linked employer–employee dataset, supplemented with actuarial calculations of tax savings when labour compensation is in the form of pensions compared to wages. Tax gains, which can be shared between employers and employees, and expected increases in average tenure are both clearly associated with the occurrence of an occupational pension. Occupational pensions are typically found in large firms, with decentralized wage negotiations, a high degree of unionization, and the requirement of long training. The results and the approach provide a basis for analyzing also the trend towards DB pensions.

Keywords

C25D21G23Occupational pensionsactuarial cost calculationstax gainslinked employer–employee data
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 10 , Issue 3 , July 2011 , pp. 435 - 456
Copyright
Copyright © Cambridge University Press 2010

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