Tag: DB pension
The brief’s key findings are: Both public pensions and municipal bonds are in the headlines. An important question is how pensions affect municipal bond rates. Our analysis of 37,500 bond issues found that pensions raise rates by a modest 3-7 basis points. However, if pension costs rise as a share of state budgets, this impact…
Abstract This paper investigates the impact of a Deferred Retirement Option Plan (DROP) on the age of retirement of employees covered by defined benefit pension plans provided by the City of Philadelphia. We show that the program results in significant and substantial increases in the age of retirement: 1.25 years on average for municipal employees…
