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Deferred compensation for career employees in public defined benefit pension plans: evidence from Colorado PERA

Published online by Cambridge University Press:  09 May 2008

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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Summary

With significant under funding of public defined benefit pension plans, public debate often focuses on funding problems, neglecting benefit-side factors that contribute to under funding. In this study we examine the benefit side by calculating the value of deferred compensation, using a unique dataset of salary histories for recent university retirees covered by the Colorado Public Employees Retirement Association plan. We find sizable levels of deferred compensation that is associated with retirement age and period, job class, service years, and to some extent gender, with administrators receiving the highest levels. We also find wage–earning profiles to underestimate salary growth for higher-paid employees.

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Type
Articles
Information
Journal of Pension Economics & Finance , Volume 8 , Issue 1 , January 2009 , pp. 35 - 61
Copyright
Copyright © 2008 Cambridge University Press

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