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The retention effects of high years of service cliff-vesting pension plans

Author

Listed:
  • Cunha, Jesse M.
  • Menichini, Amilcar A.
  • Crockett, Adam

Abstract

We study the retention effects of the Australian military’s decision to remove a 20-year cliff-vesting requirement from their retirement system in 1991. We follow to the present individuals who self-selected into and out of the 20-year cliff-vesting plan, as well as those who were forced out of the plan. Eliminating the high years of service cliff-vesting provision leads to consistently higher attrition over time.

Suggested Citation

  • Cunha, Jesse M. & Menichini, Amilcar A. & Crockett, Adam, 2015. "The retention effects of high years of service cliff-vesting pension plans," Economics Letters, Elsevier, vol. 126(C), pages 6-9.
    • Handle: RePEc:eee:ecolet:v:126:y:2015:i:c:p:6-9
    DOI: 10.1016/j.econlet.2014.11.005
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    References listed on IDEAS

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    1. David A. Wise, 1996. "Advances in the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise96-1.
    2. John Ausink & David A. Wise, 1996. "The Military Pension, Compensation, and Retirement of U.S. Air Force Pilots," NBER Chapters, in: Advances in the Economics of Aging, pages 83-114, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Retention; Cliff vesting; Retirement;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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