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Surplus deferred pension compensation for long-term K-12 employees: an empirical analysis for the Denver Public School Retirement System and four state plans

Published online by Cambridge University Press:  22 November 2010

MICHAEL V. MANNINO  and
ELIZABETH S. COOPERMAN
MICHAEL V. MANNINO*
Affiliation:
University of Colorado Denver
ELIZABETH S. COOPERMAN*
Affiliation:
University of Colorado Denver
*
Correspondence address: The Business School, University of Colorado Denver, Campus Box 165, P.O. Box 173364, Denver, CO 80217-3364, USA.
Correspondence address: The Business School, University of Colorado Denver, Campus Box 165, P.O. Box 173364, Denver, CO 80217-3364, USA.
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Abstract

This study uses a unique data set of retiree characteristics and salary histories for administrators, teachers, and non-professional employees of the Denver Public School Retirement System (DPSRS) to analyze surplus deferred compensation for DPSRS and four state K-12 defined benefit pension plans. We find sizable levels of surplus deferred compensation for each plan, with significant differences across plans, job classes, and age groups. Across plans, differences in cost of living allowances impact the expected present value of retirement benefits more than benefit table differences when controlling for each respective factor. Somewhat surprisingly, the plans in our study with the largest present value of future benefits had lower employee contribution rates. Pension wealth for reduced benefits showed larger wealth accrual at younger ages than full, unreduced benefits, and younger cohorts starting work at an earlier age received significantly higher surplus deferred compensation.

Keywords

H55Public PensionsJ26Retirement PoliciesJ33Compensation PackagesI22Education FinanceDefined benefit planscompensationsalary historypublic employeesretirement policies
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 10 , Issue 3 , July 2011 , pp. 457 - 483
Copyright
Copyright © Cambridge University Press 2010

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