Employee-contribution-only retirement plans and State and local government workers
March 12, 2009
An interesting and growing phenomenon among State and local government workers is the availability of defined contribution plans that allow employees to defer taxes on their contributions but do not provide any employer contributions.
Technically, these plans are defined contribution plans, but because they do not include employer funds, the NCS distinguishes these plans from more traditional defined contribution plans. Employers process payroll deductions and forward funds to an investment company, but these plans are often administered by the investment company independent of the employer. Often employees have a choice of many companies to administer their plan and invest their contributions. This differs from traditional defined contribution plans with employer funds, which are typically administered by the employer.
Among all State and local government workers, 54 percent had access to an employee-contribution-only plan in March 2008. Thirty-five percent had access to a defined benefit plan with an employee-contribution-only plan and 14 percent had access to both a traditional defined contribution plan and an employee-contribution-only plan.
Totally, 92 percent of State and local government workers had access to some type of retirement plan in March 2008.
These data are from the BLS National Compensation Survey. To learn more, see The Structure of State and Local Government Retirement Benefits, 2008, by William J. Wiatrowski, Compensation and Working Conditions Online, February 2009.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Employee-contribution-only retirement plans and State and local government workers on the Internet at https://www.bls.gov/opub/ted/2009/mar/wk2/art04.htm (visited January 16, 2018).
Recent editions of Spotlight on Statistics
Industry on Tap: Breweries
A look at employment, wages, and job safety in breweries and producer prices for beer.
Differences in Parents’ Time Use between the Summer and the School Year
A look at how parents of school-age children spend their time in the summer and the school year.
Hispanics in the United States: Celebrating National Hispanic Heritage Month
A look at employment, earnings, consumer spending, time use, and workplace injuries and illnesses for the Hispanic or Latino U.S. population.
Expenditures on Admissions to the Arts, Movies, Sporting Events, and Other Entertainment
A look at consumer spending and attendance at arts, sports, and entertainment events.