Implicit Compensation for Career Employees in Public Defined Benefit Pension Plans: The Colorado PERA Case

42 Pages Posted: 14 May 2007

See all articles by Michael V. Mannino

Michael V. Mannino

University of Colorado Denver

Elizabeth S. Cooperman

University of Colorado Denver

Date Written: May 8, 2007

Abstract

We report on implicit compensation provided by the Colorado Public Employees Retirement Association plan using a unique data set of salary histories of recent university retirees. Implicit compensation is the difference between the expected present discounted value of retirement benefits and retirement account balances. Our results indicate sizable implicit compensation across four measures with strong evidence of significant relations on job class, retirement age, retirement period, and service years and some evidence of a gender effect. The results provide a historical baseline that should be useful in the design of compensation models with more realistic estimates of implcit retirement compensation.

Keywords: Public Pensions, Retirement Polcies, Compensation Packages

JEL Classification: H55, J26, J33

Suggested Citation

Mannino, Michael V. and Cooperman, Elizabeth S., Implicit Compensation for Career Employees in Public Defined Benefit Pension Plans: The Colorado PERA Case (May 8, 2007). Available at SSRN: https://ssrn.com/abstract=985621 or http://dx.doi.org/10.2139/ssrn.985621

Michael V. Mannino

University of Colorado Denver ( email )

Campus Box 165, P.O. Box 173364
Denver, CO 80217-3364
United States
303-556-6615 (Phone)
303-556-5899 (Fax)

Elizabeth S. Cooperman (Contact Author)

University of Colorado Denver ( email )

Campus Box 165, P.O. Box 173364
Denver, CO 80217
United States
303-315-8422 (Phone)
303-315-8084 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
121
Abstract Views
1,230
rank
276,427
PlumX Metrics