Tag: 457 plan
But evidence from state and local workers suggests that doesn’t always happen. The economist’s simple lifecycle model predicts that workers will respond to a one-dollar decrease in their defined benefit savings by increasing their supplemental savings by one dollar. Whether this prediction holds in practice may turn out to be very important for state and…
Most state and local governments provide their employees with traditional pensions, which are nice to have. But not all pensions are equally generous. The monthly benefits vary from one place to the next, and some governments have cut costs by reducing pensions for their newest hires. Further, one in four public-sector workers aren’t currently covered…
